Another strong finish for US stocks rounded out last week trading action, however, attention will quickly shift to central bank commentary, geopolitical dialogue, and corporate earnings from the US that may highlight how inflation is hitting consumers.

Economic calendar and news

The Federal Reserve will play a central role in driving market sentiment over the coming days, with a number of key speeches expected to capture the interest of analysts and investors. It comes as consumer price index data, up 6.2%, pointed to the fastest growth in costs since 1980, ramping up pressure on the central bank to reconsider its monetary policy stance, including its trajectory for interest rates. In the meantime, US President Joe Biden will hold a virtual summit with Chinese President Xi Jinping on Monday, with the pair at the centre of a number of diplomatic differences in recent times. That was punctuated last week, however, when Chinese and American representatives at COP26 unveiled a surprise joint agreement eyeing new targets for cutting fossil fuel consumption.Elsewhere, retail sales from October are tipped to show modest growth, which may be beneficial for a number of consumer staple names. There will also be readings on industrial production, manufacturing production, housing starts, building permits, and the latest jobless claims report.Among the local items on the calendar this week is a series of speeches from RBA members, as well as the minutes from the Australian central bank most-recent Board meeting. 

With inflation also on the rise locally, and the RBA recently walking away from its 2024 rate hike forecast, these comments will be scrutinised closely for clues on how soon the first rate rise could play out. 

Shaping that decision will also be the jobs market and wage growth, with last week employment report showing a significant spike in unemployment. However, timing differences played a role on that front, with the report measured just before lockdowns ended across New South Wales and Victoria, suggesting a quick rebound could be on the cards.

Stocks on watch

The US is again likely to play centre stage for investors digesting action across the market this week.

After Elon Musk made headlines last week with news of his unconventional approach to selling down his stake in Tesla (NASDAQ: TSLA), the EV-maker and tech firm is likely to be on watch over the coming days. The stock suffered from its worst week of trading in 20 months, down more than 15%. Nonetheless, Musk still retains a significant stake in the company, and the move was in part designed to address tax obligations arising from the exercise of options.

Tesla fortunes were in contrast to those of newly-listed EV firm Rivian (NASDAQ: RIVN), which made its debut with a bang. The company raised US$12 billion via IPO, and despite being upsized leading into the first day of trading, shares in RIVN soared more than 66%.

Investors will receive another picture on the state of inflation across the US, with key retailers scheduled to deliver earnings over the coming trading sessions. Walmart (NYSE: WMT), Target (NYSE: TGT) and Home Depot (NYSE: HD) will report quarterly results, providing a barometer for consumer sentiment across the world largest economy in the wake of surging costs. Alibaba (NYSE: BABA) is another retail name set to report, albeit the focus on the Chinese e-commerce giant is likely to be driven by an assessment as to how regulations have impacted its top and bottom line.The reintroduction of certain lockdown restrictions across some countries in Europe hit the share prices of US travel stocks on Friday, with the likes of Booking (NASDAQ: BKNG), American Airlines (NASDAQ: AAL), United Airlines (NASDAQ: UAL) and Carnival Corp (NYSE: CCL) going backwards. While these names might have limited direct exposure to some of the changes announced by European countries like the Netherlands, investors may be concerned the move could be a forewarning of what to expect as the northern hemisphere approaches winter.Gold prices made a strong run last week, hitting their highest level since mid-June. Those gains extended on Friday evening, adding another wave of momentum to local ASX-listed gold producers, which had a standout week. Shares such as Evolution Mining (ASX: EVN), St Barbara (ASX: SBM) and Regis Resources (ASX: RRL) were among last week best-performing stocks.Other ASX shares on watch this week could include jobs portal Seek (ASX: SEK), financial administrator and share registry Computershare (ASX: CPU), and international education organisation IDP Education (ASX: IEL), which recorded yearly highs.