Top 5 things to watch in markets in the week ahead
Investing.com — More big tech earnings and the U.S. jobs report for July will be the main highlights in the week ahead. Investors will also be focusing on the Bank of England's latest rate decision and economic data out of the Eurozone and China. Here’s what you need to know to start your week.
Friday's U.S jobs report is expected to show that the economy added 184,000 jobs in July, while the unemployment rate remained at a historical low of 3.6% and average hourly earnings cooled.
The resilience of the labor market has been a key factor in shaping the view that the economy is heading towards a so-called soft landing of coolinginflation and strong growth.
Investor confidence received a boost last week when Fed Chair Jerome Powell said the central bank's staff no longer forecasts a U.S. recession and that inflation had a shot of returning to its 2% target without high levels of job losses.
The Fed raised rates by another 25 basis points to their highest level since 2007 last Wednesday and did not rule out another rate hike, saying it would follow future economic data.
Signs that the economy is growing at too rapid a pace could spark worries that the Fed needs to keep raising rates to contain inflation. Conversely, a steep drop-off in employment might rekindle recession fears.
Earnings season rolls on with megacaps Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) due to report earnings after the market close on Thursday.
Some investors are wary that a rally in tech stocks, which has been fueled in part by excitement over developments in artificial intelligence, may falter. The tech-heavy Nasdaq 100 is up nearly 44% year-to-date, while the S&P 500 information technology sector has gained nearly 46%.
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