Weekly Outlook | Mixed market sentiment expected
Updated Updated Tue, 2025 September 2 02:01
Stock markets closed last week in a sideways pattern and might start the month of September with mixed sentiment. Traditionally this month is filled with potential profit taking by market participants and as the crypto market shows, might also remain the same this year. In particular the rise in US equities has been tremendous again in 2025 so traders should remain cautious.
This week, the ADP data might offer further insights into the US economy. Furthermore, also Friday’s NFP data will be revealing as it is expected that only 73.000 jobs have been created.
Earlier in the week the JOLTS job openings might also be worth a consideration: it seems that open positions in the United States keep going down, which might be a negative trend moving forward. Overall the chances that the Fed will start cutting rates again could also give markets a boost after the 17th of September.
Important events this week:
– US- ISM Services PMI – The services sector has traditionally been very important in the US. After having fallen last month, this data is expected to show a slight rise in momentum again. Back above the level of 50.5 the expansion of the economy might offer a positive trend.
EURUSD monthly chart
The EURUSD currency should be in focus for this entire week. The market might offer a breakout into any direction: while weaker data could offer upside for the EUR, stronger figures might also help the Greenback gearing up momentum again. A break of the 1.1400 level to the downside might hence be crucial. The data will be released on Thursday, the 04th of September at 16:00 CET.
– US- Nonfarm payrolls– This month NFP data is expected to guide markets. While the recent data had been a miss as only 73.000 new jobs had been created also this month’s figure does not look any better. It is expected that only 74.000 positions had been created during the period last month.
S&P 500 weekly chart
The S&P 500 index closed last week in a sideways pattern. While the month of August has been positive the month of September might offer negative momentum. Due to profit taking in the traditionally rather negative time of the year a correction might be on the cards. A potentially negative reading might initially cause the index to weaken, while the outlook that the Fed will eventually cut rates a again might also give the index a boost to the upside. The NFP jobs report will be released on Friday, the 05th of September at 14:30 CET.
