Fears were particularly apparent on Thursday when Japan declared a state of emergency and announced there would be no spectators at the Summer Olympics. On that news the market sank over 2% and bond yields retreated to their lowest level since Valentine's Day. Despite those headwinds, the major indexes managed to finish at record highs on Friday.

There was some evidence that the economy is cooling off, as the ISM services survey for June came in below expectations at 60.1 down from 64.0 in May. A reading over 50 is considered expansionary, so June's number was still quite strong.

On the economic calendar, Tuesday's consumer price index release for June from the BLS will be in focus. Economists predict a 4.9% year-over-year rise, consistent with the last two months, and clearly much hotter than the 2.5% target rate.