The economic calendar will be lighter in the upcoming holiday-shortened week after Friday's data solidified expectations that the Fed will maintain its interest rates.

Start of September

The Dow and the Nasdaq both increased by 1.4% and 3.2% last week, marking their best weekly results since July. The S&P 500 recorded its best week since June with a 2.5% rise.

With regard to the Fed's meeting later this month, expectations have increased as a result of Friday's employment data.

According to Investing.com's Fed rate watch tool, interest rate futures indicate that traders now believe there is a 94% probability the U.S. central bank will hold interest rates steady at its meeting on September 19–20.

Due to Labour Day, the American stock market will be closed on Monday.

US economic data

The employment report released on Friday was the most recent in a line of economic indicators suggesting that the economy is headed for a so-called "soft landing," supporting the idea that the Fed is reaching the end of its cycle of rate hikes.

Data in the upcoming week is not anticipated to materially change this opinion.

The Institute for Supply Management will disclose statistics on service sector activity for August on Wednesday, and experts anticipate a modest softening.

The Fed will release its Beige Book, a review of economic activity in all 12 of the bank's districts, on the same day.

China

The upcoming week's economic data from China is anticipated to show that the recovery in the second-largest economy in the world is still precarious due to poor export demand and a worsening domestic property crisis, both of which have put downward pressure on GDP.

Tuesday marks the release of the Caixin services PMI for August, which is anticipated to reflect that the growth of the sector slowed marginally in August.

On Thursday, trade figures are expected to reveal that exports and imports decreased again from a year earlier in August, but at a slower rate than in July.

Market observers will also be focusing on the August CPI data, which is likely to show a little increase in consumer prices after dipping into deflation territory in July.

Crude Oil

On Friday, oil prices rose to their highest level in more than seven months, ending two weeks of declines due to worries over the forecast for a tightening supply.

Brent jumped by roughly 4.8% during the course of the week, the biggest since late July. Crude Oil WTI Futures saw their highest weekly gain since March as they increased by 7.2%.

The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, arranged supply cuts to maintain prices, and Saudi Arabia is largely anticipated to extend a voluntary 1 million barrel per day oil production reduction until October.

(Sources: investing.com, reuters.com)