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U.S. stocks gained Monday as Wall Street clawed back from a losing week and an upcoming inflation reading kept investors on their toes.

The S&P 500 (^GSPC) climbed around 1.2%, while the Dow Jones Industrial Average (^DJI) jumped 380 points, or 1.1%. The technology-heavy Nasdaq Composite (^IXIC) advanced 1.5%.

Sorrento Therapeutics (SRNE) was among big movers Monday, erasing nearly three-fourths of its value after the heavily shorted drugmaker, which was working on a COVID-19 treatment, filed for Chapter 11 bankruptcy protection in Texas.

Shares of Fidelity National Information Services (FIS) plunged 12.5% following news the payments company plans to spin off its merchant business and take a $17.6 billion loss following a failed acquisition.

In the week ahead, investors will get earnings results from headliners including Airbnb (ABNB), Coca-Cola (KO), DraftKings (DKNG), Paramount Global (PARA), and Deere (DE).

On Friday, U.S. stocks closed out their worst weekly performance of 2023 so far. The S&P 500 finished down 1.1% for the week, the Dow Jones Industrial Average 0.2%, and the Nasdaq Composite 2.4%.

Wall Street is in for an eventful week of economic data with the Consumer Price Index (CPI) due out Tuesday, the government’s retail sales report in the queue for Wednesday, and the Producer Price Index (PPI) set for release Thursday.

Economists expect headline CPI rose 0.5% month-over-month in January — a notable jump from figures seen in recent months — while the annual headline number is projected to come down to 6.2% from 6.5% the prior month, estimates compiled by Bloomberg show.

Tuesday’s CPI reading will come as investors recalibrate expectations for high interest rates will go this year after Fed Chair Jerome Powell implied in a speech last week that the battle against inflation was in its early stages. For much of the year, many were betting the U.S. central bank would pause its interest rate hiking campaign this year.

The process “is going to take quite a bit of time, and is not going to be smooth,” Powell said in a sit-down interview with billionaire investor David Rubenstein at the Economic Club of Washington, D.C., last Tuesday. “We will likely need to do additional rate increases.”

“A combination of strong economic data and Fed guidance (January’s jobs report and Powell’s comments last week, mostly) have convinced markets that rates may be ‘higher for longer,'” DataTrek’s Nicholas Colas said in a note. “This week’s CPI report will be important in terms of giving the market more information on this key issue.”

Last week, the CME Group’s FedWatch Tool, which measures market expectations for the federal funds rate, showed the range with the highest probability at the end of the year was 4.50-4.75%, or the current rate. The new modal estimate now stands at 4.75-5.00%.

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On Monday afternoon February 13, stocks skyrocketed as investors anxiously awaited inflation data. The Dow Jones Industrial Average gained more than 200 points, while the S&P 500, a broader measure of the stock market, climbed over 1 percent.

Investors had been closely watching inflation data for signs that the Federal Reserve will raise interest rates sooner than expected. Rising inflation is often a sign of a robust economy, but it can also cause the Fed to raise interest rates to keep inflation in check.

Inflation has been rising steadily over the past few months, with the Consumer Price Index (CPI) jumping 0.3 percent in January compared to the previous month. This was slightly below economists’ expectations, but it still brought the year-over-year increase to 1.4 percent, the highest since mid-2018.

The stock market has been on a roller coaster ride in recent weeks as investors try to gauge the impact of rising inflation and interest rates on corporate profits. While rising inflation can boost stock prices, higher interest rates can weigh on the economy and make it more expensive for companies to borrow money.

Monday’s gains were largely driven by technology stocks, which have been hit hard in recent weeks due to fears of rising interest rates. The tech-heavy Nasdaq Composite rose over 1.5 percent on Monday, led by gains in Apple (+2.8 percent), Amazon (+2.6 percent), and Microsoft (+2.3 percent).

Other sectors that performed well on Monday include healthcare (+1.7 percent) and consumer discretionary (+1.4 percent). Utilities (-1 percent) and real estate (-0.5 percent) were among the few sectors that declined.

With inflation data now out of the way, investors will turn their attention to other economic indicators, such as retail sales data due out later this week. Analysts will also be watching for any comments from Federal Reserve officials, who are set to testify before Congress later this week.

Overall, Monday’s gains suggest that investors are optimistic about the state of the economy, despite concerns about rising inflation and interest rates. While it’s unclear how long this rally will last, the stock market appears to be holding up well in the face of uncertain economic conditions.