Thursday's flash PMIs and jobless claims data could shape rate expectations and market direction.

U.S. equities extended their rebound last week, driven by easing tariff tensions and softening inflation data. The S&P 500 gained 5.3%, the Nasdaq surged 7.2%, and the Dow rose 3.5%. Markets responded favorably to a 90-day tariff rollback agreement between the U.S. and China, alongside April CPI and PPI data that confirmed a moderation in price pressures. The Nasdaq officially reentered bull market territory after climbing more than 20% from its April low, while the S&P and Dow reclaimed key trend levels.

This week, traders will focus on a packed Fed speaking schedule, high-profile retail earnings, and Thursday's PMI prints for further insight into the durability of the recent rally.