Inflation Data to Determine Fed Rate Hike Fate

Investors are bracing for volatility tied to the monthly Consumer Price Index report, due on September 11. The report is Wall Street's most closely watched inflation gauge, and its release could determine whether the U.S. Federal Reserve hikes interest rates later in the month.

The S&P 500 has gained nearly 13% in 2026, underpinned by an exceptionally strong year for corporate profits. However, investors have braced for a potential pullback in September, which historically is the weakest month of the year for U.S. stocks.

Data on producer prices will give investors an initial glimpse at August's inflation trends during the holiday-shortened week, with Thursday's Producer Price Index report coming a day ahead of the CPI data.