US stocks to be tested by Tesla, Netflix, delayed CPI report

Earnings reports next week, including from Tesla and Netflix, will provide a deeper look at US corporate profits while delayed US inflation data will mark another test of the stock market, which has become shakier even as it remains around record highs.

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The fourth year of the S&P 500's bull run kicked off this week with some significant gyrations after a long period of market calm.

Revived U.S.-China trade tensions and credit concerns at regional US banks drove the anxiety. The CBOE market volatility index, known as Wall Street's “fear gauge”, has surged in recent days and hit its highest level in nearly six months on Friday.

“The market is becoming more volatile, but it’s also coming off of a very nonvolatile period where we didn’t have a lot of risk catalysts bubbling to the top," said Michael Reynolds, vice president of investment strategy at Glenmede.

“Once you have valuations hit sort of full levels, as we're seeing now almost across the board, you have to be on the lookout for incremental risk catalysts.” The spark for the latest volatility was a surprise resurgence in U.S.-China trade tensions. Stocks slumped late last week after the US threatened to significantly hike tariffs by November I over China's rare-earth export controls.