Wall Street is set to receive key economic updates this week that could influence market sentiment and Federal Reserve policy. Investors will be closely watching reports on consumer confidence and inflation.
The Conference Board is scheduled to release its latest consumer confidence index on Tuesday. Analysts anticipate that the report will indicate a further decline in confidence for August, following a slip in July. Consumer confidence has been subdued for much of the year, largely attributed to persistent high inflation.
Economic conditions have been impacted by factors including global supply disruptions and rising energy costs. The U.S. war with Iran, as noted in previous reports, has contributed to inflation by affecting worldwide oil supplies, subsequently raising gasoline prices and impacting household budgets. This has also increased the cost of shipping a wide array of goods.
On Wednesday, the U.S. will release its personal consumption expenditures (PCE) price index for July, which serves as the Federal Reserve's preferred measure of inflation. Similar to the consumer price index (CPI), the PCE data has shown inflation rates remaining above the Federal Reserve's target of 2%.
The Federal Reserve has been working to bring inflation back to its 2% target. The central bank had approached this goal earlier in 2025, but inflation began to rise again as the U.S. implemented broad tariffs. The rate of inflation saw a significant increase in early 2026 when the conflict in Iran disrupted global oil shipments through the Strait of Hormuz.
Looking ahead, the Federal Reserve is widely expected to maintain its benchmark interest rate at its current steady level during its upcoming September meeting.