Last week saw volatile action with AI news front and centre. Strong earnings saw the market recover before some late day selling on Friday meant the S&P 500 ($SPX) (SPY) closed down 1.01% for the week. This week brings another round of significant market events, including key earnings, employment data and manufacturing updates.

Here are 5 things to watch this week in the Market.

Manufacturing Data

Monday brings two important manufacturing readings with S&P Global Manufacturing PMI at 9:45 am followed by ISM Manufacturing PMI at 10 am. While both measure manufacturing sector activity, the ISM report typically has more market impact as it's been the longer-running indicator and surveys a broader base of companies. Manufacturing has been in contraction territory (below 50) for several months, so any sign of expansion could boost market sentiment. Conversely, continued weakness could raise concerns about economic health.

Key Earnings Releases

This week features another strong lineup of earnings reports across various sectors. Palantir (PLTR) and Super Micro Computer (SMCI) kick things off on Monday. On Tuesday tech and healthcare earnings will be in focus with Advanced Micro Devices (AMD) Alphabet (GOOGL), Pfizer (PFE) and Merck (MRK) all reporting. The week culminates Thursday with tech heavyweight Amazon (AMZN) reporting after the close. These reports could significantly impact market direction, especially given the recent volatility in the tech sector.

Initial Jobless Claims

Thursday's Initial Jobless Claims data at 8:30 am will provide the latest snapshot of labor market health. Recent weeks have shown relatively stable claims levels, suggesting continued resilience in employment. Any significant deviation from recent trends could influence market expectations about Fed policy and economic strength.

Nonfarm Payrolls and Unemployment Rate

Friday brings the highly anticipated January employment report at 8:30 am. The market will focus on both the headline jobs number and the unemployment rate, but particularly important will be the average hourly earnings data as a gauge of wage inflation. With the Fed closely monitoring employment data for signs of labor market cooling, this report could have significant implications for rate cut expectations.

Fed Speakers

Several Federal Reserve officials are scheduled to speak throughout the week. Following last week's Fed meeting where Chair Powell pushed back against March rate cut expectations, market participants will closely monitor these speeches for any additional clarity on monetary policy direction. Of particular interest will be whether officials maintain a cautious stance on inflation or show more openness to earlier rate cuts.

Best of luck this week and don't forget to check out my daily options article.