Volatile Week Ahead for US Stock Market as Fed Releases Key Updates

The US stock market closed higher on Friday, but investors are bracing for a volatile week ahead. The Federal Reserve will release key updates on the jobs market, inflation, and consumer confidence, which could provide insight into how consumers are handling higher prices.

The August personal consumption expenditures price index will be released on Wednesday, closely watched by Wall Street and the Fed. Inflation remains above 3% despite efforts to tame high prices through interest rate hikes. The central bank aims for a 2% inflation target.

A recent surge in US Treasury yields has kept investors on edge, while high oil prices have fueled broader inflation. The US war with Iran has reduced global oil supplies since late February, impacting gasoline prices and shipping costs.