Retail Giants and Fed Minutes in Focus as Inflation Concerns Linger

Wall Street is gearing up for a busy week as several major retailers report their earnings and the Federal Reserve releases minutes from its July meeting.

The retail giants set to report include Home Depot, which will release its latest results on Tuesday, followed by Target and Lowe's on Wednesday, and then Walmart on Thursday. These reports will provide valuable insight into how businesses and consumers are handling high inflation rates, currently sitting at above 3%.

Analysts believe that the ongoing US war with Iran has contributed to a surge in oil prices, which in turn has jolted gasoline prices. This could prompt people to cut back on spending, particularly on goods that are shipped from abroad.

The results from Home Depot and Lowe's may also offer clues about the state of the housing market, as consumers' willingness to spend on home improvements can be an indicator of their economic confidence.

On Wednesday, Wall Street will get a closer look at the Federal Reserve's interest rate policy when it releases minutes from its July meeting. During that meeting, the Fed kept interest rates steady despite concerns about inflation and the jobs market. However, three officials dissented in favor of raising rates, with Fed Chair Kevin Warsh describing their discussion as a 'good family fight'. Market experts expect at least one rate hike before the end of 2026.