Wall Street is cautiously optimistic ahead of key Federal Reserve signals this week, with expectations centered on potential rate cuts in response to recent inflation and employment trends. Upcoming events include July meeting minutes release and Chairman Jerome Powell’s speech at Jackson Hole, which may or may not provide clear guidance on monetary policy direction, reflecting ongoing uncertainty among analysts. Concurrently, economic data presents a nuanced picture of tariffs’ inflationary effects, with some sectors absorbing costs while others pass them on, leaving markets unsure of the long-term impact on prices and growth. Investors remain vigilant as retail earnings reports and policy developments will test prevailing optimism.