In the morning trading session on Wall Street, stocks saw a modest increase, further building on the record highs achieved last week. The S&P 500 edged up by 0.1%, while the Nasdaq and the Dow Jones Industrial Average rose by 0.1% and 0.4%, respectively. As of 10:40 a.m. Eastern, the Dow Jones Industrial Average gained 161 points.

Traders and investors are keenly awaiting a series of earnings reports scheduled for this week. Notably, Delta Air Lines is set to provide an update on Thursday, followed by reports from JPMorgan, Citigroup, and Wells Fargo on Friday. These reports are expected to shed light on the financial health of these companies and provide insights into how consumers are managing the increasing debt burden. Analysts will closely watch for any concerns regarding missed payments or potential delinquencies.

Federal Reserve Chair Jerome Powell will address Congress on Tuesday and Wednesday, providing additional guidance on monetary policy. The central bank has maintained its benchmark interest rate at a level not seen in over two decades in an effort to control inflation. The Fed aims to bring inflation back to a sustainable rate of 2% without significantly hindering economic growth. Although inflation continues to impact consumers, it has considerably decreased compared to its peak two years ago. Despite a slowdown in economic growth this year, strong employment numbers and robust consumer spending continue to support the overall economy.

On Thursday, Wall Street will receive an update on inflation at the consumer level with the latest government report. Market expectations predict a decline in inflation to 3.1% in June from 3.3% in May. Furthermore, a report on wholesale level inflation, which measures price changes before they are passed on to consumers, is anticipated on Friday.

Persistently elevated inflation has led the Federal Reserve to adopt a cautious stance and delay potential rate cuts, dampening market expectations for multiple rate reductions this year. Most experts anticipate a single rate cut, likely not until September. The Federal Reserve's next policy meeting is scheduled for later this month.

In the bond market, Treasury yields remained relatively stable. The yield on the 10-year Treasury increased slightly to 4.29% from the previous 4.28% recorded late last Friday.

As investors eagerly await earnings reports and updates from the Federal Reserve, the stock market continues to show resilience and tread cautiously amidst ongoing economic and monetary policy challenges.