Here are the 2 big things we're watching in the stock market in the week ahead

The upcoming release of July inflation data is a significant event for the stock market, particularly for fund managers and investors. This data will provide insight into the current state of the economy and potentially influence the Federal Reserve's future decisions on interest rates. As inflation has been a major concern in recent months, the market will be closely watching the numbers to gauge whether inflation is showing signs of easing or continuing to rise.

In the context of the fund industry, inflation data can have a substantial impact on investment strategies and portfolio management. Funds with a focus on fixed income or bonds are particularly sensitive to changes in interest rates, which can be directly affected by inflation. If the July inflation data indicates a slowdown in price increases, it could lead to a decrease in interest rates, making bonds more attractive to investors. On the other hand, if inflation remains high, it could lead to higher interest rates, potentially making stocks more volatile.

As the market awaits the release of the July inflation data, fund managers will be closely watching the numbers to adjust their investment strategies accordingly. It will be essential to monitor the data's impact on the overall market sentiment and how it affects different asset classes. Additionally, investors should watch for any comments or signals from the Federal Reserve regarding their future plans for interest rates, as this will provide further insight into the potential direction of the market. The reaction of the stock market to the inflation data will be a key indicator of what to expect in the coming weeks and months.

Originally reported by cnbc.com. FundNews adds analysis for finance & markets readers.