A spike in energy prices has increased stock volatility amid the debate about whether inflationary pressure will be temporary or harm the economy. West Texas Intermediate soared to its 7-year high, hovering around $81 per barrel. After being volatile during the trading session, the S&P 500 dropped by 0.5% yesterday.

Investors are wary of what Chinese regulators may target next time the government tightens its grip on sectors from private education and digital gaming to property and insurance. At the same time, traders are concerned about rising commodity prices. Meanwhile, supply chain disruptions have made it difficult for policymakers to offset the discontinuation of stimulus against fears that growth may have reached its peak.

"Surging global energy prices along with higher interest rates have created additional angst among investors," Craig Johnson said. He does not think that inflationary pressure and supply constraints "will offset constructive demand and growth trends".

The third-quarter earnings season begins this week and companies will present their earning reports. Investors are looking for signs that lending has started to increase at the major US banks. It is reported that small businesses and individual consumers have once again started to apply for loans after government stimulus measures reduced demand during the Covid-19 crisis.

Here are several key events of the current week:

Tuesday:

- South Korea's Interest Rate Decision

- Germany's ZEW Economic Sentiment Index

- US JOLTs Job Openings

- Fed Bostic Speech

Wednesday:

- China's Balance of Trade

- FOMC Minutes

- US Inflation Rate

Thursday:

- China's PPI

- US Initial Jobless Claims and PPI