What to Expect in Markets this Week: Inflation Data, Warsh Testimony in Congress, Bank Earnings

What to Expect in Markets this Week: Inflation Data, Warsh Testimony in Congress, Bank Earnings Table of Contents Expand Table of Contents Market Recap This Week’s Top Events More Investopedia Reads JPMorgan Chase CEO Jamie Dimon expressed concern about stagflation last quarter. Qilai Shen / Bloomberg via Getty Images Close Inflation will loom large this week, with the government releasing new Consumer Price Index data and big bank earnings shedding light on how Americans are keeping up. The June CPI reading, due Tuesday, comes as factors shaping the cost-of-living are in flux and Federal Reserve officials eye the possibility of higher interest rates. The CPI jumped 4.2% year-over-year in May , driven by a spike in fuel prices. Fed Chair Kevin Warsh has suggested that inflation risks may be abating , though he spoke before President Donald Trump declared the ceasefire over. Investors will get the chance to hear from Warsh when he testifies before Congress Tuesday. Meanwhile, a handful of big national banks are reporting their second-quarter results this week. Bank executives are likely to discuss the outlook for IPOs, mergers and acquisitions, trading activity, and the state of the U.S. economy at large. Most of the major banks handed in better-than-expected numbers last quarter, but their leaders laid out a number of concerns . JPMorgan Chase CEO Jamie Dimon worried about stagflation, to name one, while Goldman Sachs Chief David Solomon said uncertainty may limit IPOs. Hurdles aside, financial sector stocks have recently been one of the stock market’s top-performing sectors . The industry is seeing commercial and industrial loan growth, and brisk capital markets activity thanks to enthusiasm over AI. Some analysts expect the momentum to continue. Market Recap Two out of three of the major U.S. indexes finished with weekly gains, with only the Dow retreating, as investors continued to assess and reassess the health of the AI trade . The S&P 500 and Nasdaq added 1.2% and 1.7%, respectively, last week, while the Dow fell 0.5%. Friday brought with it two big stoc...