Inflation update and the start of Q3 earnings: What to know this week

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Investors will be closely tracking quarterly reports from the big banks as third quarter earnings season kicks off.

A turbulent five days for markets, featuring rising tensions in the Middle East and a port strike that both started and stopped, was capped off by a better-than-expected September jobs report that helped stocks close marginally up on the week.

The week ahead will provide a fresh update on how quickly price increases are falling toward that goal.. August data marked the slowest year-over-year inflation reading since early 2021. Prices are set to rise 0.1% on a month-over-month basis, a decrease from the 0.2% reading seen in May. Tesla is expected to provide further details on its plans for its full self-driving project. Morgan Stanley analyst Adam Jonas wrote in a note to clients he expects attendees will be shown and given rides in one of Tesla's "cybercabs.”, RBC analyst Tom Narayan told Yahoo Finance that while he has high hopes for a future of self-driving robotaxis, the event is unlikely to send Tesla stock soaring.

"The bottom-up consensus forecasts a sharp and broad slowing," Deutsche Bank chief equity strategist Binky Chadha wrote in a note to clients. Bank of America US and Canada equity strategist Ohsung Kwon told Yahoo Finance that with consensus not expecting a strong third quarter, much of the focus will be on what companies say about the path forward.

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