Jobs report, Broadcom results pose next hurdles for stock market rally

U.S. equities near record highs face the next hurdle of a jobs report and semiconductor company Broadcom's quarterly results. The S&P 500 saw a weekly gain, sitting slightly above 1% from its all-time high on August 13. Nvidia's strong quarterly report earlier in the month boosted market sentiment, but investors are now watching the upcoming U.S. employment data for September 4.

This report could provide insight into the Federal Reserve's interest rate plans, with a 57% chance of a rate hike at the September meeting according to Fed funds futures. As the market nears the September meeting, each data point will be closely scrutinized. Broadcom's earnings report on Wednesday will also be closely monitored, as Nvidia's recent earnings forecast a 70% revenue increase for the next fiscal year.

Strong corporate profits driven by AI infrastructure spending are fueling the ongoing bull run in U.S. equities. The Cboe Volatility Index remains relatively low, and trading volume is below the 2026 average. Upcoming economic reports, including manufacturing and services sector activity, may also impact the market.