Retailers, Fed Data to Provide Clarity on Inflation and Interest Rates

Wall Street is set to receive key updates on the nation's biggest retailers and the Federal Reserve's interest rate policy this week.

Home Depot will report its latest earnings on Tuesday, followed by Target and Lowes on Wednesday, with Walmart releasing its results on Thursday. These reports will provide insight into how businesses and consumers are handling high inflation rates, currently above 3%.

The ongoing US-Iran conflict has led to increased oil prices, which have pushed up gasoline costs. This could lead households to adjust their spending habits, potentially shifting or cutting back on discretionary expenses.

The Federal Reserve will release minutes from its July meeting on Wednesday, offering more details about interest rate policy and the central bank's current stance. Although the Fed kept rates steady in July amid concerns over inflation, jobs market, and economic direction, three officials dissented in favor of higher rates during the meeting.