Earnings from Walmart and other top retailers will give investors more clues on the housing market and how consumers are grappling with inflation

This week, leading retailers will release financial updates to Wall Street, providing investors with clearer insights into the economy. Home Depot will report its latest results on Tuesday, followed by Target and Lowe's on Wednesday, and Walmart on Thursday. These earnings reports will help assess how consumers and businesses are coping with high inflation, which remains above 3%.

The current U.S. conflict with Iran has driven up oil prices, causing gasoline prices to rise as well. As a result, everyday items such as groceries and shipped goods are becoming more expensive, potentially leading consumers to adjust their spending habits. Home Depot's and Lowe's earnings could shed light on the housing market and whether people are investing more or less in home improvements due to rising costs.

Target and Walmart's results and forecasts will offer additional clues about how households are managing their budgets and expenses. Wall Street and economists will also gain more details about the Federal Reserve's interest rate policy following the central bank's release of minutes from their July meeting on Wednesday. Despite inflation concerns, worries about the jobs market and economic direction led three Fed officials to dissent in favor of higher interest rates during the meeting.

Fed Chair Kevin Warsh described the policy debate as a "good family fight," with Wall Street expecting at least one rate hike before the end of 2026.