U.S. stock indexes traded quietly on Monday, appearing stable after the wild swings of the previous week, with attention focused on key inflation data due later this week.

More CPI data to come

This week, attention will focus on the consumer price index inflation data, due on Wednesday, for more signals regarding the economy and inflation cooling.

The reading is expected to have cooled slightly in July compared to last month, a trend likely to increase optimism about lower interest rates.

According to CME FedWatch, investors are torn between a 25 or 50 basis point cut by September. The Fed is widely expected to begin cutting rates then, amid growing signs of a cooling U.S. economy.

The Fed recently indicated that any further encouraging economic data will set the stage for a rate cut in September and that it would not need to see inflation reach its 2% annual target to begin cutting rates.

Wall Street shows signs of recovering from the previous week’s losses

Wall Street indexes closed Friday with slight gains, ending the week flat.

The decline in technology stocks, coupled with fears of an economic recession in the United States, caused stock market indexes to start the previous week with considerable losses, with the Nasdaq entering correction territory from its recent highs.

However, bargain-buying in technology stocks, coupled with the belief that U.S. economic recession fears may be exaggerated, helped Wall Street recover most of its losses.

In addition to Wednesday’s inflation data, there will also be some earnings releases this week, even though the earnings season is mostly over.

Home Depot (HD) and Cisco Systems (CSCO) will release their results later in the week.

Crude oil rises again

Crude oil prices rose for a fifth consecutive session on Monday as concerns about the U.S. economy eased, while geopolitical tensions in the Middle East remained elevated.

Iran and Hezbollah have vowed to respond to the assassinations of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr.

Axios reported on Sunday that Israeli intelligence believes Iran will attack Israel directly within days.