On Monday, the Dow Jones Industrial Average (INDEXDJX:DJI) rebounded as Wall Street sought to recover from a week of losses.
This positive reversal came as investors geared up for a series of inflation data releases later in the week and prepared for the commencement of the second-quarter earnings season.
The 30-stock Dow added 209.52 points, or 0.62%, closing at 33,944.40. The S&P 500 (NYSEARCA:INX) also saw a gain of 0.24%, ending at 4,409.53, while the Nasdaq Composite (NASDAQ:IXIC) registered a 0.18% increase, reaching 13,685.48. These gains put an end to the three-day losing streak experienced by the major averages.
This week, the consumer price index report is scheduled for Wednesday, followed by the producer price index—a measure of wholesale price pressures—on Thursday.
During the previous week, the S&P 500 retreated by 1.16%, with the Nasdaq Composite and Dow falling by 0.92% and 1.96% respectively. Although nonfarm payrolls in June showed lower growth than expected, slightly stronger-than-expected wage growth raised concerns about the potential for additional rate hikes by the Federal Reserve.
However, Tom Lee, founder and head of research at Fundstrat Global Advisors, anticipates the inflation report to be lower than expected, which could spark a rally in the market.
“We thought a tactical sort of opportunity was emerging because last week the market sold off because the jobs report was too strong, yields really popped. So investors are kind of fearing Fed higher for longer, a little bearish into this week, and I think core CPI could come in at 0.2 or better,” Lee said during an appearance on CNBC’s “Squawk Box” on Monday.
Investors also have a multitude of quarterly reports to consider this week, with finance giants BlackRock (NYSE:BLK), JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), and Citigroup (NYSE:C) set to report and kick off the second-quarter earnings season.
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Author Kristen Moran 
