Key Economic Data Due as Inflation and Housing Pressures Persist

The U.S. business calendar for the week beginning November 2, 2026, is dominated by critical reports on inflation, housing, and employment. These updates arrive just one week after voters granted the Democratic Party a complete sweep of Congress in the midterm elections. The results came as households and businesses continue to grapple with stubbornly high prices for essentials like gasoline and groceries.

The current economic backdrop is shaped by the U.S. war with Iran, which began in February and significantly reduced global oil supplies. This energy shock fueled inflation that was already elevated due to President Donald Trump's unpredictable tariff policies with much of the world. Economists, investors, and policymakers are closely monitoring these new indicators to assess the ongoing impact of the conflict and trade barriers on prices, home values, and job creation.

Rising prices remain a significant pressure point for the broader economy, and upcoming data is not expected to show a change in this trend. On Tuesday, the U.S. will release the consumer price index for October. Economists project that the inflation rate will rise to 3.9%, up from 3.7% in September. This index tracks price changes across a wide range of goods and services. Since March, the month following the start of the war with Iran and a subsequent surge in energy costs, the CPI has shown inflation rising at a rate exceeding 3%.

On Friday, the producer price index for October will be released, offering a look at inflation before it reaches consumers. The previous report for September indicated the largest increase since December 2022. That data highlighted how rising fuel prices, particularly for diesel, continue to drive up costs for shipping and warehousing. However, crude oil prices have dropped sharply in the week following the midterm elections. Many market participants believe the new Democratic-controlled Congress will push to end the conflict with Iran, which has driven energy prices to soaring levels.

The housing market continues to face headwinds from high prices and rising interest rates. Home sales have remained stagnant, and the latest report on sales of previously occupied homes is expected to reflect this trend. The National Association of Realtors will release its October report on Thursday, with economists anticipating the figure will remain mostly unchanged from September. Home sales have hovered near a 4 million annual pace since 2023, which is far below the historic norm of approximately 5.2 million.

Home prices have increased on an annual basis for 39 consecutive months. Meanwhile, the average interest rate on the benchmark 30-year mortgage is hovering near its highest level in nearly three years. Mortgage rates are likely to stay elevated as the Federal Reserve considers another hike to its benchmark interest rate at its December meeting. This move is intended to cool the persistent inflation that remains stubbornly hot.

Employment data will also be a focus, with the U.S. releasing its weekly update on unemployment claims on Thursday. These claims serve as a proxy for layoffs and are monitored closely as an indicator of the job market's direction. The most recent weekly update shows that claims remain at historically low levels. The broader job market has shown remarkable resilience, with U.S. employers creating 165,000 new jobs in October.

Despite this resilience, signs of stress are emerging in the labor market. Wage growth has been slow and has not kept pace with inflation, making the financial squeeze from rising prices more painful for households. While layoffs have been largely held in check, it is becoming increasingly difficult for those who are let go to find new employment.

Corporate earnings will also provide insights into specific sectors, including artificial intelligence, data centers, and Hollywood. CoreWeave, a data center company, will report quarterly earnings on Tuesday after a difficult week for AI stocks. Some analysts view the firm as vulnerable to rising borrowing costs, and its shares fell close to 20% in the past week. Cisco and Applied Materials are scheduled to report their results on Thursday.

In the entertainment sector, SkyDance will post earnings on Monday. This will be the company's first report since its Paramount studios closed on an $81 billion takeover of Warner Bros. Discovery, marking the arrival of a new Hollywood giant.