The week ahead will be shortened to four trading days but packed with high-stakes developments for U.S. investors. At the center is Friday’s August jobs report, the first since July’s sharp downward revisions and leadership shakeup at the Bureau of Labor Statistics that jolted markets.
The jobs report carries added weight as the Federal Reserve prepares for its September meeting. But the Fed itself faces uncertainty: last week President Trump attempted to remove Fed governor Lisa Cook, who is now contesting the decision in court. A Senate hearing is also scheduled this week for Trump’s nominee to temporarily fill a vacant board seat, adding to the turmoil.
Beyond the main jobs report, investors will watch labor market indicators throughout the week, including JOLTS job openings, ADP’s private payrolls data, and updates on manufacturing and services activity.
On the earnings front, results from Salesforce (CRM), Broadcom (AVGO), Lululemon (LULU), DocuSign (DOCU), Macy’s (M), and newly public Figma (FIG) highlight a quieter stretch between earnings seasons.
Markets closed last week with mixed signals: optimism around the economy pushed the S&P 500 (^GSPC) to a record high above 6,500 on Thursday, before softer inflation data triggered a pullback on Friday. Still, the major indexes locked in their fourth consecutive monthly gain as investors step into September, historically a turbulent month for equities.
Spotlight on a Shifting Labor Market
July revealed cracks in the labor market, with only 73,000 jobs added and prior months’ totals revised down by more than 250,000. The fallout prompted President Trump to dismiss Erika McEntarfer as head of the Bureau of Labor Statistics, further fueling political and economic uncertainty.
Economists expect the August report to mirror July’s weakness, with 73,000 jobs added and unemployment rising to 4.3%.
At Jackson Hole on August 22, Fed Chair Jerome Powell acknowledged the labor market’s “curious” dynamics and suggested the Fed may begin cutting rates as soon as September. That makes Friday’s jobs data all the more pivotal for both policymakers and investors.
Pump Radar
Stock Alerts