Stocks rebounded sharply last week, snapping their five-week losing streak. The S&P 500 index gained 3.4%, and the Nasdaq Composite jumped 4.4%. While a path to ending the Middle East conflict still seems hazy, investors took comfort in the fact the U.S. and Iran, through intermediaries, are discussing possible off ramps.
This week will bring the first inflation report that captures the impact of the war in Iran when the Bureau of Labor Statistics releases the consumer price index on Friday. With the national average price of unleaded gasoline having surpassed $4 a gallon, up more than 35% in five weeks, headline inflation is expected to show a 1% month-over-month jump, the most since June 2022. But more important for Wall Street is how much of the increased energy costs feeds through to the core consumer price index.
Constellation Brands and Delta Air Lines report quarterly results on Wednesday on a very light earnings calendar, a week before Big Banks kick off first-quarter earnings season.
Monday 4/6
The Institute for Supply Management releases its Services Purchasing Managers' Index for March. Consensus estimate is for a 54.9 reading, about one point lower than in February.
Tuesday 4/7
Levi Strauss reports first-quarter fiscal-2026 earnings.
The Census Bureau releases the durable goods report for February. The consensus call is for a 1% month-over-month decline for new orders for durable manufactured goods to $318 billion.
Wednesday 4/8
Applied Digital, Constellation Brands, Delta Air Lines, and RPM International announce quarterly results.
The Federal Open Market Committee releases the minutes of its mid-March monetary-policy meeting. At that meeting, the FOMC kept the federal-funds rate unchanged at 3.5% to 3.75%.
Thursday 4/9
The Bureau of Economic Analysis releases the personal consumption expenditures price index for February. Economists forecast a 2.8% year-over-year increase, matching January's data. The core PCE price index, which strips out volatile food and energy prices, is expected to rise 3%, one-tenth of a percentage point less than previously.
The BEA releases its final estimate for fourth-quarter gross-domestic-product growth. Expectations are for an annualized 0.7% increase, unchanged from the BEA's second estimate, released in mid-March.
Friday 4/10
The Bureau of Labor Statistics releases the consumer price index for March. The consensus call is for a 3.4% jump from a year earlier, one percentage point more than in February. The core CPI is seen rising 2.7%, compared with 2.5% previously. This is the first inflation report to capture the effects of the war in Iran, and that is reflected in the estimates. A 3.4% year-over-year increase would be the largest since April 2024.
The University of Michigan releases its Consumer Sentiment index for April. Consensus estimate is for a 52 reading, roughly one point lower than in March.
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