The main focus for the US stock market this week will be the US August nonfarm payrolls data released on Friday. If sustained weakness appears in the labor market, it would not only solidify market expectations for the Fed to start cutting interest rates in September but also rekindle hopes for a third 25-basis-point rate cut this year.

Previously, Fed Chair Powell, speaking at the Jackson Hole conference, stated that inflation risks are skewed to the upside in the near term, while employment risks are skewed to the downside. More importantly, Powell acknowledged that the balance of risks "appears to be shifting toward the labor market." However, he also pointed out that labor supply is slowing, which could lead to a decrease in the number of new jobs.

It is also worth noting that this report will be the first nonfarm payrolls data released since US President Trump fired the head of the US Bureau of Labor Statistics (BLS) in early August. According to a previous Xinhua report, dissatisfied with the latest employment data released by the US Department of Labor, US President Trump announced on August 1 that he had ordered the dismissal of Erica McEntaffer, the head of the Bureau of Labor Statistics under the Department of Labor, accusing her of "manipulating employment data for political purposes."

Data released by the US Department of Labor on August 1 showed that the US unemployment rate rose month-on-month in July, and the performance of new job creation in non-agricultural sectors that month also fell short of market expectations. At the same time, the number of new jobs in non-agricultural sectors for May and June was significantly revised down compared to previously released data, indicating a significant cooling of the US job market. Trump posted on social media that day, stating that similar downward revisions had occurred earlier this year and that the data was always "negatively adjusted."

Besides the August nonfarm payrolls data, in the coming week, investors can also glean clues about changes in monetary policy from speeches by more Fed officials. St. Louis Fed President Musalem, New York Fed President Williams, and Chicago Fed President Goolsbee are all scheduled to deliver public speeches this week. Additionally, the Fed will release the latest Beige Book (officially known as the "Summary of Commentary on Current Economic Conditions") on Wednesday.