A critical labor report meets a stock market at record highs: What to know this week

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Labor Market News

Jobs Report,Unemployment Rate,The Fed

The September jobs report highlights the coming trading week as investors search for clues on how rapidly the labor market is cooling.

In the week ahead, the September jobs report is expected to provide further clues on how quickly the labor market is cooling. Updates on job openings, activity in the services and manufacturing sectors, and consumer confidence are also on the calendar.Federal Reserve Chair Jerome Powell said in a press conference on Sept. 18 that the labor market is currently in "solid condition" and the central bank is cutting interest rates, in part, to keep it that way.

Consensus expectations on Wall Street point to more signs of a gradual cooling rather than a rapid slowdown. The September jobs report is expected to show 130,000 nonfarm payroll jobs were added to the US economy, with unemployment holding steady at 4.2%, according to data from Bloomberg. In August,Bank of America US economist Aditya Bhave wrote in a note to clients Friday that the consistently low layoff numbers suggest that "September employment report should be decent.

"We believe likely lowers full-year 2025 guidance on weakening China macro and brand reset in that , as well as more conservative assumptions tied to the planned innovation-driven sales acceleration in the second half of 2025," Lejuez wrote.Tesla stock has been quietly rallying, with shares rising more than 24% over the past month and officially turning back positive for the year.

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