The first week of August ended up being another winning week for the stock market. There were some assumptions that the market would face selling pressure from mean revision after the huge move it made in July. The S&P 500 and Nasdaq ended with +0.4% and +2.2% respectively. Wednesday’s July U.S. inflation data will be the main highlight this week after last Friday’s much stronger-than-anticipated jobs report quashed hopes that the Federal Reserve may relent in its aggressive campaign to tame the highest inflation in decades. Any indication that inflation is still not close to peaking could test the recent rally in U.S. stock markets. Here’s what you need to know to start your week. 1. Test for U.S. stock market rally A rally in U.S. stocks may be tested this week as Wednesday’s inflation data could quash hopes for a dovish shift by the Fed after it delivered 225 bps worth of rate hikes so far this year.