Markets enter a critical week following Friday's dramatic selloff that delivered the worst one-day loss in months for major indexes, despite the Nasdaq and S&P 500 ($SPX) (SPY) hitting record highs Thursday. The market rally's sudden reversal came amid a disappointing July jobs report that revived Fed rate cut hopes while simultaneously raising concerns about economic momentum, compounded by rising core inflation readings. President Trump's implementation of new tariff rates for dozens of countries effective August 7 adds another layer of uncertainty, while his controversial firing of the Bureau of Labor Statistics head following the jobs report has raised questions about the integrity of future economic data. This week's economic calendar centers on Tuesday's ISM Services index, which economists expect to rise to 52.2 from 50.8, potentially signaling accelerating expansion in the economy's largest sector. Key earnings from Advanced Micro Devices (AMD), Disney (DIS), and other major companies will test whether corporate fundamentals can support recent market highs amid growing macro uncertainties.
Here are 5 things to watch this week in the Market.
