U.S. stocks face jobs test as Broadcom earnings follow Nvidia rally

A U.S. employment report due on September 4 and quarterly results from Broadcom will test a stock-market rally that has pushed the S&P 500 to within 1% of its August 13 record high. Reuters polling expects August employment to rise by 45,000 jobs and the unemployment rate to hold at 4.2%, after July payrolls unexpectedly fell by 23,000. Investors will scrutinize the data for signals about the U.S. Federal Reserve’s interest-rate plans; fed funds futures on Thursday implied a 35% chance of a September rate increase. Nvidia’s strong results and forecast for 70% revenue growth in its next fiscal year have supported sentiment, while Broadcom’s report will be watched for similar visibility into artificial-intelligence demand. Manufacturing and services data, along with results from Dell Technologies and Palo Alto Networks, are also due. S&P 500 second-quarter earnings were on track to rise 33.5% year over year on an adjusted basis, according to LSEG IBES data as of August 21.

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