The Fed's interest rate cuts may continue if the upcoming jobs data reveals ongoing weaknesses in the labor market.

The highly anticipated September jobs report is scheduled for release on October 4 at 8:30 a.m. ET, and it is crucial for market movements.

The unemployment rate has risen from 3.5% in September 2022 to 4.2% in August 2024, with payroll gains showing significant slowdown.

This report follows August data that indicated labor market deterioration, prompting the Federal Reserve to cut interest rates more than expected.

A weak jobs report could lead to larger interest rate cuts, which may negatively impact the dollar and raise recession concerns.

Market analysts are anticipating a 0.25% interest rate cut by the Fed on November 7, but a more significant 0.5% cut could occur if labor market conditions worsen.

Changes in the September labor data could significantly influence market perceptions regarding the Federal Reserve's monetary policy decisions.

This week also features a series of economic reports, including initial jobless claims, factory orders, and PMI surveys, which will provide insights into hiring trends and business expansion.

Market participants are particularly focused on PMI surveys for manufacturing and services, as well as data on construction spending and factory orders, to assess overall economic health.

Despite recent declines, inflation remains above the Federal Reserve's 2% target, with the Consumer Price Index at 2.5% and core CPI at 3.2% as of August 2024.

Major companies reporting earnings this week include Nike, which is introducing a new CEO amid a nearly 20% decline in share value this year, and Levi Strauss, which is speculated to collaborate with superstar Beyoncé.

Federal Reserve Chair Jerome Powell is set to speak at an economic conference on Monday, with other Fed officials also scheduled to deliver remarks throughout the week.