The major markets were mixed this week as economic data sent conflicting signals.

The August nonfarm payrolls report showed just 22,000 jobs added, far below expectations, and pushed the U.S. unemployment rate up to 4.3%. This weakness supported the case for Federal Reserve rate cuts. At the same time, inflation data complicated the outlook, as the Consumer Price Index rose 2.9% year-over-year in August, while core inflation remained steady at 3.1%. Broadcom’s strong earnings beat, driven by AI-chip demand, helped buoy the tech sector and capped a flat week for equities overall.

Looking ahead, markets will turn their attention to the Federal Reserve’s upcoming meeting, where expectations point to a 25-basis-point rate cut in response to labor-market softness and weak employment data. However, elevated inflation may limit the Fed’s flexibility. Investors will also watch jobless claims, consumer sentiment data, and developments in trade policy. Earnings releases from FedEx, Lennar, and consumer-oriented companies, along with Meta’s Connect event on AI strategy and product updates, are also expected to influence sentiment next week.

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.