Retailers, Fed to Offer Clues on Inflation, Interest Rates This Week

Wall Street investors will receive crucial updates from major retailers and the Federal Reserve this week. Home Depot's earnings report is set to be released on Tuesday, followed by Target and Lowe's on Wednesday, with Walmart reporting its results on Thursday.

The reports are expected to provide insight into how businesses and consumers are handling high inflation, which remains above 3%. The ongoing US-Iran conflict has pushed oil prices higher, leading to increased fuel costs, and retailers' results may indicate whether households are adjusting their spending habits as a result.

Home Depot's and Lowe's reports could also shed light on the housing market, given that home improvements are a significant expense for many Americans. Target and Walmart's forecasts will provide further insight into household budgeting and spending patterns.

The Federal Reserve is set to release minutes from its July meeting on Wednesday, which may offer more details about interest rate policy. In July, the Fed kept rates steady amid concerns over inflation, job market performance, and economic direction. However, three officials dissented in favor of higher rates during the meeting, with Chair Kevin Warsh describing it as a 'good family fight'.

Markets anticipate at least one interest rate hike before the end of 2026.