Retailers Face High Inflation Headwinds as Fed Meeting Minutes Loom

Wall Street will be abuzz this week as major retailers Home Depot and Walmart release their latest earnings reports. The results, set to trickle in over the next few days, will provide crucial insights into how consumers are coping with high inflation.

The ongoing U.S.-Iran conflict has driven oil prices up, leading to higher gas prices and putting pressure on households' budgets. With inflation solidly above 3%, investors are eager to see if this trend is impacting consumer spending habits.

Home Depot's earnings report on Tuesday will be closely watched for signs of whether people are cutting back on home improvement projects due to economic uncertainty. Target and Lowe's reports on Wednesday will follow, offering further clues about household budgeting and spending patterns.

The Federal Reserve's July meeting minutes, released on Wednesday, will also provide valuable information about the central bank's interest rate policy. Although the Fed held rates steady in July, three officials dissented in favor of higher rates, citing concerns over inflation, the jobs market, and economic direction.