Fed Minutes, Retail Earnings to Drive Wall Street in Week Ahead

Wall Street investors are bracing for key economic data and retail earnings reports in the week ahead. The Federal Reserve's minutes from its latest policy meeting will be closely watched, as they may provide clues about interest rates and whether a rate increase remains possible in September.

The Fed kept US interest rates unchanged at its last meeting, and market expectations for an imminent rate hike have weakened following softer-than-anticipated US employment data and a modest easing in inflation. Currently, money markets are pricing in just a 27% probability of a 25-basis-point rate increase at the Fed's next meeting in September.

Major retailers such as Walmart, Target, Home Depot, Costco, Kroger, and Albertsons will also report their quarterly results, providing insights into consumer spending and the health of the US economy. Additionally, several economic reports are due during the week, including preliminary purchasing managers' data for August, the Empire State manufacturing survey, and industrial production and housing-starts data.