What you need to know this shortened week

The stock market is poised for more turmoil this week when investors return to Wall Street on Tuesday for a week of holiday trading.

US markets will be closed on Monday for Labor Day.

All three major averages fell late in Friday’s session to cap a third straight week of losses after data from the Labor Department showed nonfarm payrolls rose by 315,000 last month, while the jobless rate rose to 3 .7%.

Next week, Federal Reserve Chairman Jerome Powell will deliver remarks Thursday at the Cato Institute’s 40th Annual Monetary Conference, one day after the Federal Reserve publishes its latest Beige Book report.

The global economic calendar will be busy, with the European Central Bank, Reserve Bank of Australia and Bank of Canada meeting as officials around the world try to tackle rising inflation.

Europe’s central bank is expected to raise interest rates by 0.75% after euro zone price increases hit a new record high.

Meanwhile, in Silicon Valley, Apple’s ( AAPL ) annual fall product launch event will kick off on Wednesday, September 7. Unlike 2020 and 2021, this year’s unveiling will take place in person at the company’s headquarters in Cupertino.

Apple is expected to release two new iPhones, a new watch, and possibly new AirPods. Updates to the Mac and iPad series are expected next month.

The iPhone maker is the S&P 500’s most heavily weighted component, accounting for more than 7% of the index.

Gains were light at the end of this reporting period, but the week ahead will feature some closely watched reports from companies like meme-stock darling GameStop ( GME ), DocuSign ( DOCU ) and Kroger ( KR ).

An employee arranges Apple iPhones as customers shop at the Apple Store on 5th Avenue shortly after a new product sale in Manhattan, New York, New York, U.S., March 18, 2022. REUTERS/Mike Segar

Short-term corporate events, however, will not change the market’s focus on the Fed’s next policy announcement set for September 21. The recent volatility in markets shows that investors are bracing for another strong increase in the Fed’s benchmark interest rate after Powell claimed in a recent speech that officials are committed to restoring price stability.

“A modest slowdown in employment growth in August may be welcome by the Fed, but it will not prevent further significant rate hikes in the coming months,” Oxford Economics’ Nancy Vanden Houten and Kathy Bostjancic said in a note on Friday. “Fed Chairman Powell made it clear last week that the FOMC plans to push interest rates well into containment territory to reduce inflation and prevent inflation expectations from unwinding.”

The head of the Federal Reserve said that actions at the September meeting “will depend on the totality of incoming data and the evolving outlook.”

Jerome Powell, chairman of the Federal Reserve, and his wife Elissa Leonard walk in Grand Teton National Park, where economic leaders from around the world gather for the Jackson Hole Economic Symposium, outside Jackson, Wyoming, U.S., August 25, 2022. REUTERS/Jim Urquhart

Jerome Powell, chairman of the Federal Reserve, and his wife Elissa Leonard walk in Grand Teton National Park, where economic leaders from around the world gather for the Jackson Hole Economic Symposium, outside Jackson, Wyoming, U.S., August 25, 2022. REUTERS/Jim Urquhart

While cooler jobs in August fueled optimism among some market participants that Fed officials may opt for a less aggressive rate hike of 50 basis points instead of 75 at its September meeting, the Consumer Price Index (CPI) next week may temper those expectations if the reading is hotter than expected.

“The Fed will likely slow the pace of policy tightening in September with a 50 basis point hike, barring a surprisingly strong CPI print,” EY Parthenon chief economist Gregory Dako said in a note on Friday after the jobs report .

Economic Calendar

Monday: No noteworthy reports are scheduled for publication.

Tuesday: S&P Global US Services PMIfinal August (44.2 expected, 44.1 previously); S&P Global US Composite PMIfinal august (45.0 expected, 45.0 previously); ISM Service IndexAugust (55.2 expected, 56.7 last month

Wednesday: MBA Mortgage Applicationsweek ended September 2 (-3.7% earlier); Commercial balanceJuly ($-70.1 billion expected, -$79.6 previously); Federal Reserve Beige Book

Thursday: Initial unemployment claimsweek ended September 3 (232,000 previously) Continuous claimsweek ended May 21 (1,438 previously). Consumer’s faithJuly ($32.5 billion expected, $40,154 previously)

Friday: Wholesale Salesmonth-on-month, July (1.8% previously); Wholesale inventory, month to monthfinal July (0.8% expected, 0.8% previously); Household Change in Net WorthQ2 (-$544.0 billion previously)

Earnings Calendar:

Monday: No noteworthy reports are scheduled for publication.

Tuesday: Coupa Software (COUP)

Wednesday: American Eagle (EOF), Dave & Buster’s (I AM PLAYING), Korn/Ferry (KFY)

Thursday: American Outdoor Brands (AOUT), DocuSign (DOCU), FuelCell Energy (FCEL), National Drink (WHISTLE), RH (RH), Zumies (ZUMZ)

Friday: Kroger (KR)

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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