Five Stories That Could Move Markets This Week
A holiday-shortened trading week in the U.S. will still bring plenty for investors to digest, with focus on a legal battle over Trump-era tariffs, the release of key U.S. jobs data, several business activity reports, and the Federal Reserve’s Beige Book. Earnings from Broadcom and Salesforce will also take center stage.
1. Legal battle over Trump tariffs
The tariffs imposed under former President Donald Trump continue to face significant legal challenges, with critics arguing they relied on overly broad emergency powers.
On Friday, the U.S. Court of Appeals for the Federal Circuit struck down the sweeping tariffs, giving the White House until mid-October to appeal to the Supreme Court. If it does not, the ruling will take effect.
Analysts at ING noted that global investors will be closely watching whether U.S. Treasury markets come under pressure should the government be forced to return already-collected tariff revenues.
2. Jobs data in focus
The highlight of the economic calendar will be Friday’s U.S. nonfarm payrolls report, which could influence expectations ahead of the Fed’s mid-September policy meeting.
Last month’s weaker-than-expected report strengthened bets on a rate cut, while Fed Chair Jerome Powell has warned of mounting risks to the labor market. According to CME’s FedWatch Tool, markets are pricing in more than an 87% chance of a 25-basis-point cut at the Sept. 16–17 meeting.
Economists expect payrolls to rise by 74,000 in August, broadly in line with July’s 73,000, though still signaling sluggish job growth.
3. ISM business activity data
Investors will also get updates on U.S. business activity, providing more insight into the impact of tariff policies.
The ISM manufacturing PMI for August is forecast at 48.9, up from 48.0 in July, while the services PMI is expected at 50.5 versus 50.1 previously.
A reading below 50 indicates contraction. Manufacturing, about 10% of the U.S. economy, contracted for a fifth straight month in July, while the services sector, which accounts for two-thirds of output, showed little growth and weak hiring.
4. Fed’s Beige Book
On Wednesday, the Federal Reserve will release its Beige Book, offering one of the last snapshots of economic conditions before its September meeting.
The prior report highlighted persistent cost pressures and concerns about inflation, with many businesses delaying hiring and layoff decisions amid uncertainty over trade policies.
5. Earnings from Broadcom and Salesforce
On the corporate front, Broadcom will headline this week’s earnings, with results likely to shed light on AI-related spending after disappointing updates from several major players.
Nvidia recently rattled markets with a softer revenue outlook, weighed down by restrictions on sales to China. Meanwhile, software giant Salesforce is also set to report on Wednesday, with investors viewing its results as a key test for the software sector’s resilience against potential disruption from AI.
Source: Investing.com
