US Jobs Data, Broadcom Earnings in Focus for Wall Street; Shanghai Watches China PMI

Global stock markets this week will focus on U.S. labor data, earnings from major technology companies and the trajectory of China’s manufacturing sector. Wall Street is poised to react sharply to labor-market readings ahead of the Federal Open Market Committee’s September meeting, while investors in Shanghai will be watching for signs of a recovery in Chinese manufacturing.

The main event for New York stocks is the U.S. August employment report due on September 4. The market expects the unemployment rate to rise 0.1 percentage point from the previous month to 4.2%. Nonfarm payrolls are forecast to increase by 45,000, returning to positive territory after falling by 23,000 in July.

Before that, the Job Openings and Labor Turnover Survey, or JOLTS, due on September 1, will provide another gauge of labor-market strength. Economists expect 7.39 million job openings. A reading above that level could signal that corporate demand for workers remains firm.

The data carry added weight after Federal Reserve Chair Kevin Warsh strongly underscored his commitment to price stability in a Jackson Hole speech. If the employment report comes in stronger than expected, it could bolster the case for a September interest-rate increase.

Among corporate earnings, Broadcom is drawing attention. The company supplies customized artificial-intelligence chips to Google and Meta. Better-than-expected results could reinforce the view that demand for AI-related investment remains solid and lift sentiment toward technology stocks.

In Shanghai, the key variable is China’s August manufacturing purchasing managers’ index, or PMI, due on August 31 from the National Bureau of Statistics. China’s manufacturing PMI stood at 49.2 in July, below the 50 threshold that separates expansion from contraction.

China’s recent economic indicators have also missed expectations. Industrial output rose 4.5% in July from a year earlier, below the 5% forecast. Retail sales increased just 0.6%, far short of expectations for 1.5%.

If the PMI remains weak, concerns about a slowdown in China’s economy could intensify again. A rebound in the manufacturing reading, by contrast, could revive hopes for an economic recovery and improve investor sentiment.