Investors and economists will be closely monitoring a series of U.S. labor market reports and key corporate earnings from the technology sector during the holiday-shortened trading week beginning Sept. 2. The economic data is anticipated to provide further information regarding the Federal Reserve’s upcoming interest rate decisions, while financial results from companies including Salesforce and Broadcom will offer insights into the artificial intelligence market.
The focus on the labor market follows recent statements from Federal Reserve officials. Fed Chair Jerome Powell described the labor market as being in a “curious kind of balance that results from a marked slowing in both the supply of and demand for workers,” suggesting that “downside risks to employment are rising.”
Separately, Fed Governor Christopher Waller stated last week that a significantly weak August jobs report could prompt a half-percentage point interest rate cut at the central bank’s September meeting, a departure from the more common quarter-point adjustments.
Several key labor reports are scheduled for release. On Wednesday, the Job Openings and Labor Turnover Survey (JOLTS) will be published. On Thursday, ADP will release its private employment report, and the government will issue the latest weekly initial jobless claims data.
The week’s economic reports will conclude with the August nonfarm payrolls report on Friday. According to economists polled by Dow Jones, expectations are for the U.S. economy to have added 75,000 jobs last month, with the unemployment rate projected to increase to 4.3% from 4.2% in July. The same poll indicates an expectation of 75,000 jobs added in the ADP report and 231,000 initial jobless claims for the week.
In corporate news, Salesforce is scheduled to report its quarterly earnings on Wednesday after the market closes. According to LSEG, the consensus estimate is for the company to report revenue of $10.14 billion and adjusted earnings of $2.78 per share. Market participants will be observing the performance of its AI-related products, Data Cloud and Agentforce.
On Thursday, semiconductor manufacturer Broadcom will release its earnings. Investors will be looking for updates on the company’s custom chip design services and networking products, which are integral to AI data centers. Citigroup analysts noted in a report that they expect Broadcom to report above-consensus results “driven by continued AI strength.” The consensus estimate from LSEG is for revenue of $15.83 billion and earnings per share of $1.65.
Another development for market watchers is a recent appeals court ruling that invalidated most of the “reciprocal” tariffs from the previous administration, though the duties remain in effect until mid-October to allow time for a government appeal. U.S. markets will be closed on Monday, Sept. 1, for the Labor Day holiday.
