The stock market opened on a positive note for Monday, starting off the week with the Dow Jones Industrial Average up 100 points.

The Nasdaq Composite was likewise up, with an increase of 0.63%, and the S&P 500 climbed 0.59% for Monday.

This puts the overall stock market in a good place, but this is a week of somewhat important inflation data to be released. We are expecting the FOMC members to speak, specifically about inflation, the economy, and when interest rate cuts might happen. The expectation is that they could still happen in September but are unlikely in June.

Also expected this week are numbers for unemployment in the US, which indicates how many jobs are being turned over and how inflation is affecting the workforce. Average hourly earnings numbers are coming out as well, which if they are high would indicate that inflation is rising. Nonfarm employment change is also due out this week, indicating how many jobs are being created in industries outside of farming and how that ties into the economy.

Where the Stock Market Might Be Headed

From what we have seen of inflation data recently, there are mixed reports on where inflation might be going. The overall trend is that inflation in the United States is rising, and that will hurt the stock market and make it more difficult for investors to find a reason out buy up stock. However, some indicators are pointing to reduced inflation and a recovering economy.

We are seeing small indicators of improvement for the economy, but so far they have not shifted inflation in the right direction. We expect the market to have  a mild week and Monday’s highs to disappear very quickly.

Look for earnings reports to be released this week and to help shift the market a bit. Major reports coming out for today include ones for Tyson Foods, and Equinix.