Retailers, Fed Data Steal Spotlight on Wall Street This Week

Wall Street will be closely watching major retailers this week as they report their latest earnings results. Home Depot, a leading home improvement retailer, is set to release its quarterly results on Tuesday, followed by Target and Lowe's on Wednesday. Walmart, the largest retailer in the US, will conclude the week with its earnings report on Thursday.

The earnings reports from these retail giants are expected to provide valuable insights into how consumers are coping with high inflation. Inflation has remained above 3% for an extended period, driven by factors such as the ongoing US-Iran conflict and subsequent surge in oil prices. As a result, consumers may be forced to cut back on discretionary spending or shift their budgets towards essentials.

The Federal Reserve's interest rate policy will also be under scrutiny this week as the central bank releases minutes from its July meeting on Wednesday. The Fed kept interest rates steady in July but faced dissenting views among some officials, who argued for higher rates to combat inflation. With at least one more rate hike expected before the end of 2026, investors will closely monitor any signals from the Fed about future monetary policy.