Last week’s consumer and producer price data “revived [the] stickiness of inflation debate, he says. While jobless claims were subdued, a nonfarm payrolls report at the start of August showed the 3-month average at its weakest since 2010 when unemployment was 9%, he adds.

This week's set-piece event is the Jackson Hole central-bank gathering in Wyoming, slated for Thursday through Saturday. Investors will be glued to Federal Reserve Chair Jerome Powell's speech, hoping for any insight into whether the central bank might kick off interest-rate cuts in September.

The investing world will turn its attention to northwestern Wyoming in the week ahead, with Chair Jerome Powell set to give his most important policy speech of the