Stocks on Wall Street ended mostly higher on Friday to notch their best week since June, after the latest U.S. jobs report solidified expectations of a pause in interest rate hikes this month.
The Labor Department's report showed the August unemployment rate jumped to a more than one-year high of 3.8%, while wage growth slowed.
The soft data added to growing evidence of a cooling labor market, and it cemented expectations that the Federal Reserve will keep rates unchanged at its September meeting.
For the week, the blue-chip Dow Jones Industrial Average rose 1.4%, while the benchmark S&P 500 and the tech-heavy Nasdaq Composite added 2.5% and 3.3% respectively.
The holiday-shortened week ahead — which will see U.S. stock markets closed on Monday for the Labor Day holiday — is expected to be a rather quiet one.
On the economic calendar, the key events for the week include the Institute for Supply Management's (ISM) services-sector survey index, as well as the latest jobless claims numbers.
Those releases will be accompanied by a heavy slate of Fed FOMC speakers, which will surely add to the debate on the U.S. central bank’s outlook for interest rates. Currently, financial markets see a 94% chance of no action, and only a 6% likelihood of a rate hike, according to Investing.com’s Fed Rate Monitor Tool.
Meanwhile, there are just a handful of companies reporting corporate results as the Q2 earnings season winds to a close, including GameStop (NYSE:GME), DocuSign (NASDAQ:DOCU), C3.AI (NYSE:AI), and Zscaler (NASDAQ:ZS).
Regardless of which direction the market goes next week, below I highlight one stock likely to be in demand and another that could see fresh downside.
Remember though, my timeframe is just for the week ahead, Mo
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