Big Economic Reports Are Hitting Thin Market. What to Expect?

This week is considered the last hurrah of summer.

The JOLTS report Tuesday, illustrates that employers are slowing hiring amidst a challenging economic landscape characterized by sticky inflation, high interest rates, and reduced credit availability. The significant decline in job openings and quits in July suggests that companies are not as eager for labor while workers are less likely to leave their current jobs.

· Volatility markets seem to believe Tuesday's numbers are the start of a trend, with VIX dropping to levels not seen since August.

· As for the bond market, the US 10y yield retreated back to 4.15%, a 0.2% decrease from its peak in August.

· US dollar index gave up earlier gains, falling to 103.7 after JOLTS data.

Investors are shifting their focus to the core PCE Price index released on Thursday and non-farm payroll data on Friday. Wall Street expects core PCE MoM to remain at 0.2% from the previous month, and non-farm employment to drop by 17,000 in comparison, according to Bloomberg. Powell stated in his speech at the Jackson Hole conference that the Fed's decision to continue or pause interest rate hikes is economic data dependent. Tueday's jump is a reminder that liquidity considerations are currently more important to stock traders than the economy's health.