US Stocks Hang in Balance as Inflation Data Looms

The US stock market is bracing for inflation data due this week, which will play a crucial role in determining whether the Federal Reserve raises interest rates at its September meeting.

The benchmark S&P 500 slipped on Friday but still ended the week with a modest gain, remaining about 1% below its record high reached in mid-August. Stocks have been buffeted by shifting expectations for monetary policy, while rising U.S. Treasury yields have raised concerns about the sustainability of Wall Street's rally.

The prospect of a rate hike gained further momentum on Friday after stronger-than-expected labour market data. However, the outlook for monetary policy remains uncertain, leaving investors braced for increased volatility ahead of the monthly Consumer Price Index report due on September 11.