China’s AI Plans, Jobs Data, and Broadcom Earnings

Markets are entering the week with heightened concerns over China’s semiconductor ambitions. Reports that Alibaba is developing its own AI chip triggered a selloff in Nvidia, AMD, and Taiwan Semiconductor last week, raising fears that Chinese tech giants may reduce reliance on U.S. chip suppliers. The spotlight now shifts to Broadcom’s earnings on Thursday. With exposure to AI accelerators and data center networking, Broadcom’s results and guidance will be a critical gauge of whether the current AI investment cycle remains durable or is facing new headwinds.

The most important macro event this week will be Friday’s August jobs report, the last significant labor market release before the Federal Reserve’s September 17–18 policy meeting. Nonfarm payrolls, unemployment, and wage growth will be closely analyzed to see if they support recent dovish Fed commentary. Additional context will come from Tuesday’s JOLTS job openings report, Thursday’s ADP employment data, and jobless claims. Any deviation from expectations could shift market odds for rate cuts and directly affect rate-sensitive sectors.

On the earnings front, enterprise software leaders Zscaler (Tuesday) and Salesforce (Wednesday) will take center stage. Their results will provide critical insights into corporate IT budgets, cybersecurity demand, and CRM adoption trends. Both companies operate in segments highly sensitive to interest rates and economic confidence, so their guidance and commentary will help determine whether enterprise software can maintain resilience amid broader volatility.

Tuesday’s Manufacturing PMI and ISM data, followed by Thursday’s Services PMI and ISM Non-Manufacturing index, will give markets a clearer picture of business activity across industries. As services represent the bulk of U.S. economic output, these reports will be vital for assessing business confidence, spending trends, and inflation pressures ahead of the Fed’s meeting.

Adding another layer of uncertainty, a federal appeals court declared most Trump-era tariffs illegal, with the case likely heading to the Supreme Court. If upheld, the ruling could force the government to reimburse importers tens of billions of dollars, altering trade policy dynamics and fiscal priorities. At the same time, turbulence in the airline industry continues as Spirit Airlines filed for bankruptcy again, boosting rivals like Frontier, which may capitalize on consolidation and market share gains.