Walmart, Target and Home Depot set to give Wall Street a peek at the American consumer, one week after stocks’ all-time high

This week is set to provide Wall Street with a glimpse of the American consumer, following a week where stocks reached an all-time high. The S&P 500, Dow Jones Industrial Average and Nasdaq futures showed mixed movement ahead of the earnings reports from major retailers. Although U.S. stocks hit a record high last week, recent retail spending data showed a surprising pullback in July, marking the biggest decrease in retail spending in over a year.

Walmart and Target are among the retailers reporting their second quarter earnings this week, with Target experiencing a surge under its new CEO, Michael Fiddelke. Home improvement companies, Home Depot and Lowe's, are also expected to release their quarterly earnings. The sector is currently grappling with high inflation and price-sensitive consumers.

The Federal Reserve's decision about interest rates has been delayed, which may be beneficial for markets as it reduces credit costs, but could also indicate slowing growth amidst elevated inflation. The Fed is due to release minutes from its July meeting on Wednesday, offering further insight into its rate-hike plans. Meanwhile, oil prices surged on Monday, with Iran announcing its collaboration with Oman to manage shipping through the Strait of Hormuz, a critical oil transit route.