Wall Street week ahead: Reports on consumer confidence and inflation on tap

Next week, Wall Street will receive crucial updates on consumer confidence and inflation. The Conference Board will release its latest consumer confidence report on Tuesday, and Wall Street anticipates a decline in confidence for the U.S. economy, following a similar trend in July. Consumer confidence has been low throughout the year due to persistently high inflation.

The ongoing conflict in Iran has contributed to this issue by limiting oil supplies globally, driving up gasoline prices and increasing costs for various products, from groceries to clothing.

Additionally, on Wednesday, the U.S. will release its report on personal consumption expenditures for July, which the Federal Reserve considers the primary gauge of inflation. Similar to the consumer price index, this metric has consistently shown inflation rates remaining well above the 3% target. The Federal Reserve has been grappling to bring inflation back down to its 2% goal.

In early 2025, the Fed nearly achieved this target, but inflation began rising again as the U.S. imposed numerous tariffs worldwide. In early 2026, the inflation rate surged as the Iran war disrupted global oil shipments from the Strait of Hormuz. The Federal Reserve is expected to keep its benchmark interest rate unchanged during its meeting in September.