The CPI report for June, due on Tuesday, also could ratchet up pressure on the Fed to act to control inflation. The core measure of CPI, which strips out energy prices, will be in focus, including the extent to which this year's rise in oil prices may be filtering through to inflation more broadly, investors said.
"If we get hotter inflation or we see signs that inflation will remain elevated for the next few months, it could push odds of a rate increase higher by year end," said Anthony Saglimbene, chief market strategist at Ameriprise.
Another inflation gauge, the producer price index, comes a day after the CPI report. Monthly retail sales on Thursday will provide a view into the strength of consumer spending.
Higher interest rates can pressure equities by raising borrowing costs for consumers and companies.
Investors' bets on impending rate hikes rose following a surprisingly hawkish Fed meeting last month, the first under new Chair Kevin Warsh. Minutes of that meeting released this week showed policymakers' mounting concerns about inflation.
Warsh himself is expected to deliver his first testimony on monetary policy before Congress next week.
JPMorgan Chase JPM.N and Goldman Sachs GS.N are among the major banks reporting on Tuesday, setting the tone for a quarterly reporting season expected to show exceptional overall U.S. profit growth.
The bank reports could provide insight into consumer strength, through credit card products, and into broader credit trends.
"If you're seeing healthy earnings and outlooks coming from the big banks next week, it's a sign that the overall economy, the overall environment for businesses and consumers held up relatively well in the second quarter," Saglimbene said.
Reports are also due next week from such high-profile companies as Netflix NFLX.O, BlackRock BLK.N and Johnson & Johnson JNJ.N.
S&P 500 earnings are expected to jump 23.7% in the second quarter from a year ago, according to LSEG IBES.
"We're in store for a really strong quarter," said Glenmede strategist Reynolds. "A lot of these companies are going to have to put up some good numbers to really justify those expectations."
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