"Liberation Day" came and went, but tariffs will still dominate the headlines and drive much of the market action this week.

The baseline 10% tariffs on all countries went into effect April 5, but Wednesday will bring higher rates for countries that have large trade surpluses with the U.S., including China, the European Union, Japan, South Korea, and Taiwan. Thursday is when China's 34% retaliatory duties on all imported U.S. goods take effect.

First-quarter earnings season also kicks into high gear with the big banks reporting their results. Delta Air Lines releases earnings on Wednesday, CarMax on Thursday, followed by JPMorgan Chase, Morgan Stanley, and Wells Fargo on Friday.

On the macroeconomic front, the Bureau of Labor Statistics' Thursday release of the consumer price index will be the highlight. The bureau will also release the producer price index on Friday; the University of Michigan's consumer sentiment index is also that day. The index hit a more-than-two year low in March, and consumers' long-term inflation expectations reached a multidecade high.

Monday 4/7

Levi Strauss reports first-quarter fiscal 2025 results.

Tuesday 4/8

Cal-Maine Foods and RPM International announce earnings.

The National Federation of Independent Business releases its Small Business Optimism Index for March. Consensus estimate is for a 98.7 reading, two points lower than in February.

Wednesday 4/9

Constellation Brands and Delta Air Lines release quarterly results.

Higher tariff rates on certain countries, announced by the White House on April 2, go into effect. The 10% baseline tariff rate for all countries was effective as of April 5. The higher levies include 34% for China, 24% for Japan, and 20% for the EU. China is putting a 34% tariff on all U.S. goods starting on Thursday.

The Federal Open Market Committee releases the minutes from its mid-March meeting. The central bank left the federal-funds rate unchanged at 4.25% to 4.5%.

Thursday 4/10

CarMax holds a conference call to discuss earnings.

The Bureau of Labor Statistics releases the consumer price index for March. Economists forecast a 2.6% year-over-year increase, two-tenths of a percentage point less in February. The core CPI, which strips out volatile food and energy prices, is expected to rise 3%, compared with 3.1% previously.

Friday 4/11

Bank of New York Mellon, BlackRock, JPMorgan Chase, Morgan Stanley, and Wells Fargo report first-quarter results.

The BLS releases the producer price index for March. The consensus call is for 3.6% year-over-year rise, two-tenths of a percentage point more than in February. The core PPI is expected to increase3.3%, compared with 3.2% previously.

The University of Michigan releases its Consumer Sentiment Survey for April. Consensus estimate is for a 54.5 reading, 2.5 points lower than in March. Consumers' year-ahead expectations for inflation was 5% in March and 4.1% for longer-term inflation, the highest since 1993.