Chris Larkin, director of trading and investment management at Morgan Stanley E*TRADE, said that the S&P 500 index has broken through the trading range of nearly two months and may face the test of inflation and geopolitics this week. The employment report may have allayed concerns about the Fed's interest rate hike next month, but if this week's inflation data cools less than expected, the level of concern is likely to intensify.

Chris Larkin, director of trading and investment management at Morgan Stanley E*TRADE, said that the S&P 500 index has broken through the trading range of nearly two months and may face the test of inflation and geopolitics this week. The employment report may have allayed concerns about the Fed's interest rate hike next month, but if this week's inflation data cools less than expected, the level of concern is likely to intensify.