Key checks from Walmart and the big box stores: What to watch this week

This week, investors will be focused on earnings reports from major retailers and manufacturing data. The S&P 500, Nasdaq, and Dow Jones all saw modest gains in the previous week. Baidu, a Chinese tech conglomerate, will release its AI cloud revenue results on Tuesday. Walmart, Alibaba, Ross Stores, and Deere & Company will report their quarterly earnings on Thursday.

Housing starts data is expected to show a significant downward shift on Tuesday, followed by the Fed's minutes from their last meeting on Wednesday. Consumer sentiment in the US has grown more pessimistic, with older and lower-income consumers particularly affected by inflation and geopolitical uncertainty. Retail sales data also showed a decline in August.

The US dollar is being influenced by a shift in its relationship with oil prices and the Federal Reserve's monetary policy. Despite increased investment in AI data centers, bottlenecks such as chip shortages, skilled labor shortage, regulatory constraints, and power supply issues could hinder progress.