US equities are trading near record highs, but the rally faces two key tests in the week ahead: the August jobs report and Broadcom's quarterly results.

Investors will be watching labour-market data closely for clues about the Federal Reserve's interest-rate path. The monthly employment report — which includes nonfarm payrolls, the unemployment rate and wage growth — is among the most closely tracked economic releases on the calendar, because employment is one half of the Fed's dual mandate of maximum employment and price stability. Signals of strength or weakness in hiring and unemployment could shape expectations for the direction of monetary policy.

At the same time, Broadcom's earnings and outlook will be in focus as a gauge of whether enthusiasm around artificial intelligence stocks remains intact. The chipmaker's results are widely viewed as a bellwether for AI-related demand, as its semiconductor business supplies networking and custom accelerator chips used in large-scale AI computing infrastructure by major cloud providers. Its report arrives amid a broader stretch in which AI-related names have driven a large share of index-level gains, leaving markets sensitive to any sign of slowing demand in the sector.

The S&P 500's top gainers and losers as of 29 August 2026, 01:30 AM IST, reflected positioning ahead of these events, with market participants balancing bets across sectors.

Beyond this week, investors will also be watching how subsequent economic data and upcoming Fed commentary inform the rate outlook, and whether AI-linked spending momentum among chipmakers and their customers holds up.

The coming week's calendar therefore centers on three themes: the August employment figures, scrutiny of the Fed's rate trajectory, and Broadcom's earnings report.

Source: Economic Times Markets