Global markets are set for a busy week ahead, featuring U.S. employment data, Purchasing Managers' Index (PMI) figures, and a fresh wave of corporate earnings reports. The U.S. will release July's nonfarm payrolls report, ADP employment data, and the ISM manufacturing and services indices. Investors will use these to gauge whether the U.S. economy remains resilient and if the Federal Reserve needs to tighten policy further at its September meeting. The Fed held interest rates steady at its July meeting, but internal divisions over inflation risks have widened. Meanwhile, rising energy prices and core inflation still above the policy target have amplified the impact of employment data on rate expectations. If July's job growth significantly exceeds expectations, Treasury yields and the U.S. dollar could continue to climb; if the labor market cools rapidly, market focus may shift from inflation back to economic growth risks.
On the corporate front, the U.S. second-quarter earnings season continues. AI software company Palantir (PLTR.US), chipmaker AMD (AMD.US), SanDisk (SNDK.US), commercial space company SpaceX (SPCX.US), industrial equipment manufacturer Caterpillar (CAT.US), media and entertainment conglomerate Disney (DIS.US), ride-hailing platform Uber (UBER.US), pharmaceutical giant Eli Lilly (LLY.US), cloud software company Datadog (DDOG.US), and ride-hailing platform Lyft (LYFT.US) will all report earnings. Among them, the results from Palantir, AMD, SanDisk, and SpaceX will serve as key indicators for the market to assess AI software demand, data center chip growth, and the valuation of the space economy. Meanwhile, earnings from Disney, Uber, and Eli Lilly will provide fresh insights into the consumer, mobility, and weight-loss drug markets.
Key Events Preview
U.S. July Nonfarm Payrolls Report Nears, Fed Rate Hike Expectations Face Repricing
On Friday, August 7, the U.S. Bureau of Labor Statistics will release the July nonfarm payrolls report, which includes key indicators such as nonfarm payroll employment, the unemployment rate, and average hourly earnings. The market currently expects an increase of about 91,000 in U.S. nonfarm payrolls for July, with the unemployment rate potentially rising from 4.2% to 4.3%. In comparison, June's nonfarm payrolls increased by only 57,000, indicating a clear slowdown in job growth. Investors will focus on whether the slowdown is a moderate cooling or an early sign of a significant economic deceleration. If both job growth and wage growth exceed expectations, it could strengthen the case for the Fed to continue raising rates; Treasury yields, the U.S. dollar, and financial stocks could gain support, while high-valuation tech stocks and gold may face pressure. Conversely, if the nonfarm data comes in well below expectations and the unemployment rate rises more than forecast, investors might reduce bets on Fed rate hikes, though recession fears could also limit the upside for U.S. stocks. Therefore, next week's market reaction will depend not only on the data's strength but also on whether investors are more concerned about inflation or economic growth.
U.S. ISM Indices Released in Cluster, Economic Growth and Price Pressures Under Scrutiny
On Monday, August 3, the U.S. will release the July ISM Manufacturing Index; on Wednesday, August 5, the July ISM Services Index will be published. According to the ISM release schedule, the manufacturing report is typically released on the first business day of each month, while the services report comes out on the third business day. For the manufacturing data, the market will focus on sub-indices for new orders, employment, and production to determine if business investment and goods demand can sustain expansion. The prices paid index is also noteworthy; against the backdrop of rising international oil prices and transportation costs, this indicator could influence market views on whether commodity inflation is heating up again. The services sector accounts for a larger share of U.S. economic activity, meaning its employment and prices sub-indices may have a greater impact on Fed policy expectations. If both the manufacturing and services indices continue to expand while price pressures rise, the market may further increase expectations for rate hikes this year.
AI Earnings Face Critical Test, Palantir, AMD, SanDisk Set to Report
After the U.S. market close on Monday, August 3, Palantir will release its second-quarter earnings. The market will focus on U.S. commercial revenue, government business growth, new orders from its AI platform (AIP), and whether management raises its full-year guidance. Palantir remains one of the higher-valued companies in the U.S. AI software sector; therefore, even if revenue and profits continue to grow, the order book, remaining performance obligations (RPO), and whether future growth rates can support its current valuation will determine the stock's direction after the earnings report. Palantir has confirmed it will report results after the U.S. market close on August 3.
After the U.S. market close on Tuesday, August 4, AMD will release its second-quarter earnings. Investors will focus on data center revenue, AI accelerator shipments, server processor demand, and gross margin changes. As tech companies continue to increase investment in AI infrastructure, the market hopes to see AMD win more orders in the AI chip market and gradually close the gap with the industry leader. If AI chip revenue and second-half guidance exceed market expectations, AMD's report could boost the entire semiconductor sector; if order growth, product delivery, or gross margin performance disappoint, it could heighten investor concerns about the return on AI capital expenditures.
After the U.S. market close on Wednesday, August 5, SanDisk will report its fiscal 2026 fourth-quarter and full-year earnings. The market will focus on SanDisk's fourth-quarter revenue, adjusted earnings per share, and gross margin performance, as well as management's latest guidance on NAND flash pricing, market supply-demand dynamics, and product shipments for the new fiscal year. As AI servers and data centers drive growing demand for high-capacity storage, changes in revenue from enterprise solid-state drives (SSDs), data center products, and high-end NAND products will be important indicators for assessing SanDisk's growth quality.
SpaceX Faces First Post-IPO Earnings Report, Starlink and Cash Flow in Focus
SpaceX will also release its first quarterly earnings report since going public after the U.S. market close on Tuesday, making it one of the most anticipated corporate events next week. The market will focus on Starlink subscriber numbers, satellite internet revenue, rocket launch frequency, government contracts, and Starship program spending. Given the significant volatility in SpaceX's stock price since its IPO, this first report will help investors assess whether the company's business model, profitability, and cash flow can support its high valuation. Beyond revenue and profits, management's comments on Starlink growth, Starship test progress, space data centers, and AI-related businesses could also influence market sentiment. If the company can demonstrate stable cash flow and a clear commercialization path, the stock price could gain support; but if capital expenditures and R&D expenses continue to grow rapidly, the market may focus more on financing needs and potential stock supply pressure.
Consumer, Healthcare, and Industrial Giants Set to Report
On Tuesday, Caterpillar will release its second-quarter earnings. The market will observe global infrastructure construction, mining investment, and industrial demand trends through its three segments: Construction Industries, Resource Industries, and Energy & Transportation. Investors will also focus on the impact of raw materials, tariffs, and transportation costs on profit margins. If orders, dealer inventories, and full-year guidance remain stable, it could ease concerns about a global manufacturing slowdown.
On Wednesday, Disney, Uber, and Eli Lilly will report earnings. Key points for Disney's report include streaming business profitability, theme park attendance and consumer spending, sports media performance, and changes in traditional TV revenue. The market will assess whether improvements in streaming can offset the pressure from declining traditional TV. For Uber, investors will focus on mobility bookings, delivery growth, profit margins, and free cash flow, while also monitoring whether autonomous driving partnerships could affect the future cost structure and competitive landscape. Eli Lilly's focus remains on demand for weight-loss and diabetes drugs. The market will watch sales of Mounjaro and Zepbound, capacity expansion, supply status, and full-year guidance. As competition in the weight-loss drug market intensifies, Lilly's production capacity and drug pipeline will directly impact investors' assessment of its long-term growth prospects.
On Thursday, Datadog and Lyft will report quarterly earnings. Datadog's report will reflect trends in enterprise cloud spending, AI workload growth, and customer cost optimization. For Lyft, the market will focus on active riders, gross bookings, insurance costs, and profit margins, comparing its performance to Uber's.
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