"Stock Market Rally Faces Inflation Test: Weekly Insights"

The stock market rally will face a challenge this week as investors await the release of the Personal Consumption Expenditures (PCE) index for October, which is the Federal Reserve's preferred inflation measure. Economists expect "core" PCE inflation to have risen 3.5% annually last month. In addition to inflation data, the economic calendar will include updates on manufacturing activity, consumer confidence, and home prices. On the corporate side, quarterly reports are expected from Salesforce, Snowflake, Okta, Dollar Tree, Foot Locker, Kroger, and Ulta Beauty. The stock market has been boosted by recent economic data aligning with expectations of a "soft landing" for the US economy, but the upcoming inflation reading will provide a final test for this narrative.