The S&P 500 dipped nearly 0.8% to 4,458.58 on Friday. For the week, the S&P 500 is off about 1.7%.

The S&P 500 and the Dow haven’t recovered since the poor jobs report last Friday, falling each day since, including all four trading days of this holiday-shortened week.

Investors are worried about persistent Covid cases slowing the economy just as hot inflation causes the Federal Reserve to take away easy policies. 

The August producer prices index released Friday showed wholesale costs for businesses rose 8.3% on an annual basis, its biggest advance on record since at least 2010. The PPI accelerated 0.7% for the month, above the 0.6% Dow Jones estimate. The more important consumer price index for August will be released on Tuesday.

U.S. stock index futures were in positive territory during early morning trading on Monday as the S&P 500 comes off its longest daily losing streak since February.

The closely watched consumer price index will be released on Tuesday, at which point the Street will see how much of the heightened costs are being passed along to consumers. Economists surveyed by FactSet are expecting the reading to show that consumer prices jumped 5.3% on an annual pace in August. Retail sales data will be released later in the week.

The Federal Reserve will begin its two-day policy meeting on September 21, where investors will be looking for clues about the central bank’s bond-buying program.
 

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Plan A : Remain buy as long as oil price trades firmly above 68.8. Targets are 70.3 and 70.9.

Plan B : Consider short if oil price surges but fails to breach above 70.9. Targets are 70.2 and 69.1.