US Labor Market, Tech Earnings, PMI Data Shape Fed Rate Outlook

The upcoming week will spotlight the US labor market with key employment reports including ADP employment, initial jobless claims, and the August non-farm payrolls, amid signs of a slowing job market which has led Federal Reserve Chair Jerome Powell to signal a possible interest rate cut in September. Economic data releases will also include ISM services and manufacturing PMIs, with manufacturing expected to remain in contraction but improve slightly, while services are anticipated to show modest expansion. In corporate earnings, Broadcom and Salesforce are set to report, with Broadcom's results closely watched for continued AI semiconductor growth after a record quarter, and Salesforce's earnings scrutinized for progress on AI initiatives and potential to revitalize growth amid investor concerns. Market participants will also monitor Treasury yields and commodity prices, including a recent rise in gold prices driven by a weaker dollar. Overall, the combination of labor market data, manufacturing and services indicators, and major tech earnings will be pivotal in shaping expectations around Federal Reserve policy and market direction in the near term.