Last week brought higher-than-expected CPI data which initially rattled markets, though the S&P 500 ($SPX) (SPY) showed resilience and maintained levels near all-time highs. This week brings a lighter economic calendar, with markets closed Monday for Presidents Day.

Here are 5 things to watch this week in the Market.

Holiday Trading

Markets are closed Monday for Presidents Day, which could lead to lighter trading volumes throughout the week. Historically, holiday-shortened weeks can see reduced liquidity which sometimes results in increased volatility if significant news breaks. Traders should be prepared for potentially wider spreads and more pronounced price movements on lower volume.

FOMC Meeting Minutes

Wednesday afternoon brings the release of minutes from the Federal Reserve's latest meeting. While we already know the outcome of that meeting, the minutes often provide additional context about the discussions that took place. Given recent hotter-than-expected inflation data, traders will parse these minutes carefully for insights into the Fed's thinking about the timing of potential rate cuts.

Manufacturing Data

Thursday's Philadelphia Fed Manufacturing Index and Friday's Manufacturing PMI will provide fresh insights into the industrial sector's health. The manufacturing sector has been showing signs of contraction in recent months, so any improvement could boost market sentiment. The Services PMI on Friday will also be watched closely as the services sector has been a key driver of economic resilience.

Key Earnings

In a relatively quiet earnings week, Walmart (WMT) stands out as Thursday's major report. As the nation's largest retailer, Walmart's results and guidance could provide important insights into consumer spending trends and the broader retail sector. Their commentary on inflation's impact on consumer behavior will be particularly relevant given recent CPI data.

Political Landscape

Markets could see some reaction to Tuesday's scheduled speech by former President Trump. While political events don't always directly impact markets, any significant policy proposals or comments about economic direction could influence certain sectors.

Best of luck this week and don't forget to check out my daily options article.