Key Takeaways
- Federal Reserve Chair Jerome Powell is set to deliver closely watched remarks at Jackson Hole on Friday, potentially signaling the Fed’s path on interest rates.
- Major retailers including Walmart, Home Depot, Target, and Lowe’s will release earnings, providing insight into consumer demand and tariff impacts.
- Investors will also monitor housing data, Fed meeting minutes, and weekly jobless claims for additional market signals.
Fed Chair Powell in Focus: Interest-Rate Path Ahead
Investors’ attention this week turns toward the Jackson Hole Economic Policy Symposium, where Fed Chair Jerome Powell will deliver remarks on Friday. His speech could provide critical clues on whether the central bank will lean toward interest rate cuts in its upcoming meetings.
Powell faces heightened pressure as inflation remains elevated while the labor market shows signs of cooling. The Federal Reserve Board will also release the minutes from its July meeting, offering further insights into policymakers’ outlook and recent divisions within the committee.
Key Economic Data: Housing, Jobs, and Market Indicators
Housing sector trends will also be in focus. U.S. Census Bureau data on housing starts (Tuesday) and existing home sales (Thursday) will help gauge the strength of the real estate market.
Meanwhile, the U.S. Bureau of Labor Statistics will release the latest weekly jobless claims, providing signals on the labor market’s resilience. Additional releases include the Philadelphia Fed manufacturing survey and S&P Flash PMI, which could add to market volatility.
Retail Earnings: Walmart, Home Depot, Target, and More
Earnings season continues with a strong retail focus. Results from Walmart (WMT) on Thursday will be closely watched as the company navigates tariff-driven cost pressures.
- Home Depot (HD) reports Tuesday, with investors focused on housing-related demand.
- Target (TGT) releases earnings Wednesday, following a cautious outlook last quarter.
- Lowe’s (LOW) and Ross Stores (ROST) also report this week, offering broader insights into consumer sentiment.
Together, these reports will help investors understand whether tariffs and inflation are eroding consumer spending in 2025.
Market Recap and Calendar Highlights
U.S. stocks ended last week with gains, with the Dow Jones Industrial Average hitting an intraday record on Friday. This momentum could be tested as investors digest a busy calendar:
Key Events This Week:
- Tuesday, Aug. 19: Housing starts, Home Depot earnings
- Wednesday, Aug. 20: Fed minutes, Target & Lowe’s earnings
- Thursday, Aug. 21: Existing home sales, Walmart & Ross Stores earnings, jobless claims, PMI reports
- Friday, Aug. 22: Powell remarks at Jackson Hole, BJ’s Wholesale earnings
One More Thing: Social Security Turns 90
This month marks the 90th anniversary of Social Security, a program that continues to face long-term funding challenges. Analysts warn that without reform, future benefit reductions remain a possibility—an important backdrop for retirement planning and U.S. fiscal policy debates.