U.S.-Iran Tensions, Jobs Week, September Fed Decision
By Jacqueline Policastro | Quincy News Correspondent
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Washington (Quincy News) — Market Recap: Wall Street ended Friday lower after Federal Reserve Chair Kevin Warsh used his first Jackson Hole speech to deliver his clearest warning yet that interest rates may need to rise if inflation does not improve.
The S&P 500 fell 0.3%, the Nasdaq dropped 0.5% and the Dow was essentially flat. All three still gained for the week, with the Nasdaq up 0.9% and the S&P 500 and Dow each gaining 0.5%. The two-year Treasury yield jumped nearly 13 basis points to 4.36%, while the 10-year climbed to about 4.73%.
The move followed the latest inflation data earlier in the week. The Fed’s preferred PCE price index rose 0.2% in July and 3.7% from a year earlier. Core PCE, excluding food and energy, also increased 0.2% for the month and remained at 3.3% annually.
Today’s Focus: Renewed U.S.-Iran fighting is adding uncertainty for markets Monday. U.S. forces struck Iranian rocket launchers on Larak Island in the Strait of Hormuz on Sunday, while Iran said it fired missiles at U.S. bases in Jordan early Monday. Oil prices climbed nearly 3% amid concerns about further disruptions in the strait.
Investors are also turning to a consequential week of labor-market data following Warsh’s Jackson Hole speech. July job openings arrive Tuesday, private payroll data from ADP comes Wednesday and weekly jobless claims are due Thursday. The August employment report follows Friday, while manufacturing and services reports will offer fresh readings on employment and prices.
ON THE SCHEDULE FOR THE WEEK OF MONDAY, AUGUST 31, 2026
-Monday-Tuesday – G20 Finance Ministers and Central Bank Governors Meeting in Asheville, NC
-Tuesday, 9:05 a.m. ET – Fed Governor Michael Barr speaks on the economic outlook and financial inclusion
-Tuesday, 9:45 a.m. ET – Final August S&P Global U.S. Manufacturing PMI
-Tuesday, 10 a.m. ET – July JOLTS job openings, August ISM Manufacturing PMI and July construction spending
-Tuesday earnings – Medtronic, Dell Technologies
-Wednesday, 8:15 a.m. ET – August ADP private-sector employment report
-Wednesday, 2 p.m. ET – Federal Reserve Beige Book
-Wednesday earnings – Broadcom, Hewlett Packard Enterprise and Snowflake
-Thursday, 8:30 a.m. ET – Weekly jobless claims, revised Q2 productivity and unit labor costs
-Thursday, 10 a.m. ET – August ISM Services PMI
-Thursday earnings – Ciena, Lululemon and DocuSign
-Friday, 8:30 a.m. ET – August employment report
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