US equity futures showed little change on Sunday evening as investors prepared for the release of key inflation data, following a tumultuous week in the markets. Dow Jones Industrial Average futures and S&P 500 futures traded just above the flat line, while Nasdaq 100 futures edged slightly higher by 0.1%.

Although all major averages saw gains by the end of the previous week, they fell short of a full recovery. The Dow concluded the week with a 0.6% decrease, while the S&P 500 experienced only a marginal decline of 0.04% and the tech-heavy Nasdaq Composite ended with a 0.18% loss.

According to Callie Cox, Chief Market Strategist at Ritholtz Wealth Management, market swings have been clustering together recently, fueling expectations of further turbulence. While the fear of a recession looms, Cox believes that these emotions might work in favor of stock market investors. She also suggests that positive economic data could give rise to more relief rallies and that rate-sensitive sectors could potentially lead the market higher.

Investors are keen to get a clearer understanding of the state of the economy, especially after concerns over a slowdown in the job market provoked anxiety and rocked the markets. Key data to watch for this week includes the July producer price index report, due on Tuesday, as well as the consumer price index report, scheduled for Wednesday. Thursday will bring the release of the July retail sales report.

Cox suggests that another round of favorable inflation data could alleviate concerns about the Federal Reserve potentially losing its way. She highlights the tendency of investors to draw early conclusions about the economy and emphasizes the importance of analyzing fresh data to accurately assess the magnitude of the recent sell-off.

Furthermore, Cox asserts that retail sales and retailer earnings could potentially dispel fears of a job market slowdown. By considering the overall spending data instead of panicking over a lackluster jobs report, a more comprehensive picture of the U.S. consumer's behavior can be obtained.

In terms of upcoming earnings reports, Home Depot is set to announce its earnings before the market opens on Tuesday, with Walmart following suit on Thursday.

As investors await the crucial inflation data, U.S. equity futures remain steady. The outcome of these reports will likely have a significant impact on market sentiment and the direction of equities in the days to come.