Dow futures rise as updates this week from the Fed and top retailers will test Wall Street’s big rally

Finance·StockDow futures rise as this week from the Fed and top retailers will test Wall Street’s big rallyBy Jason MaBy Jason MaWeekend EditorJason MaWeekend EditorJason Ma is the weekend editor at Fortune, where he covers , the economy, finance, and housing.SEE FULL BIO Traders work on the floor of the New York Stock Exchange on Wednesday.Angela Weiss—AFP via Getty ImagesWall Street is heading into a pivotal week, with stocks riding high on expectations that the Federal Reserve will cut rates next month and signs that tariffs aren’t weighing on the economy as much as feared, so far

But minutes from the Fed’s last meeting, Jerome Powell’s Jackson Hole speech, and retail earnings will put the market’s views to the test

U.S. stock futures pointed higher on Sunday evening ahead of a critical stretch for as investors brace for fresh clues on rate cuts and tariffs

Energy will also be in focus this week amid continued diplomacy to end Russia’s war on Ukraine as harsher U.S. sanctions on Moscow could target its oil exports, though President Donald Trump refrained from announcing any fresh penalties after ceasefire talks Friday failed to duce a deal

That’s as corporate earnings have continued to come in strong and as the inflation readings were mixed but still haven’t set off panic the effect of tariffs

With the labor market also looking weaker, Wall Street overwhelmingly sees the inflation data giving the Federal Reserve a green light to resume rate cuts next month, further fueling market optimism

But those views will be tested this week

On Wednesday, the Fed will release minutes from its policy meeting in July, when central bankers kept rates steady though two officials dissented

The details should show how much debate occurred and to what extent other policymakers were leaning a certain way

Then the main attraction will take place on Friday, when Fed Chair Jerome Powell will der a speech at a gathering in Jackson Hole, Wyo

The annual event previously has served as an opportunity for policymakers to tease forthcoming rate moves

Meanwhile, earnings season is winding down, but the coming week will feature several top retailers

Depot reports Tuesday, with Lowe’s and Target due on Wednesday

Walmart will put out its numbers on Thursday

Their quarterly will vide new insights into how much tariffs are affecting prices and who is picking up the extra costs

The precise impact of tariffs on inflation remains somewhat of a mystery

While companies may be absorbing much of the tariff costs for now, it’s not how much longer they can keep it up and how much consumers will be able to shoulder later

If the retail giants keep eating tariff costs, that will show up on the bottom line and in their guidance

Citi doesn’t expect consumers to get hit with big price hikes in the future, even as more levies are expected to roll out. “Softer demand means firms will have difficulty passing tariff costs on to consumers,” chief US economist Andrew Hollenhorst said in a note. “While some firms might still attempt to slowly increase prices in coming months, the experience so far suggests these increases will be modest in size

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