Wall Street is closely monitoring the latest inflation data, set to release next week, as investors await signs on whether the Federal Reserve will cut interest rates in September. The Consumer Price Index and Producer Price Index are expected to be released Tuesday and Thursday, respectively, with other economic data such as retail sales also on deck.
Analysts predict a quarter-point cut at the Fed meeting next month, but any indication that inflation is rising above 2% could fuel stagflation fears and impact market sentiment. The S&P 500 has been trading near all-time highs, with some strategists warning of a potential pullback of 5% or worse.
The upcoming Jackson Hole meeting on August 21-23, where the Fed is expected to shape expectations for the September meeting, adds to the uncertainty. Meanwhile, concerns over government data integrity have surfaced after President Trump fired the Bureau of Labor Statistics commissioner following a weak jobs report.
Other economic data released this week includes the Consumer Price Index and Producer Price Index. Tariffs and trade talks with Russia may also influence market sentiment, as investors wait for potential catalysts that could impact markets before the summer closes.
Source: https://www.cnbc.com/2025/08/08/stock-market-next-week-outlook-for-august-11-15-2025.html