Strong US Data and Oil Rally Drive a Volatile Week (August 31 – September 4, 2026, Recap)

Overview

Financial markets were shaped by a busy week of economic data, central bank decisions, and corporate earnings. Manufacturing activity in the US remained expansionary, Australia posted moderate economic growth, and central banks in New Zealand and Canada took different policy approaches. Labor-market reports from Canada and the US also drew attention, while strong gains in crude oil contrasted with weaker precious metals and mixed stock-market performance.

Major Economic Indicators and Events in Review

Tuesday, September 1

17:00 – USA: ISM Manufacturing PMI (USD)

US manufacturing remained in growth territory in August 2026, with the ISM Manufacturing PMI at 54.6%. New orders, production, employment, exports, and imports all continued to expand, although several areas grew more slowly than in July. At the same time, manufacturers faced higher prices and slower supplier deliveries. Overall, the sector is still expanding, but signs of softer demand and ongoing cost pressures suggest growth is becoming more uneven.

EUR/USD slipped 0.21% on the day.

Wednesday, September 2

04:30 am – Australia: GDP q/q (AUD)

Australia’s economy grew modestly in the June 2026 quarter, with GDP rising 0.4% and 2.1% over the year. Growth was supported by household spending, government consumption and stronger exports, particularly coal. Consumer spending increased, helped by strong sales of electric and hybrid vehicles, while private investment remained flat. Business activity improved across most industries, and company profits rose, led by mining. Wages and employee compensation also increased, while the household saving rate edged higher. Overall, the economy continued to expand, although growth remained relatively moderate.

AUD/USD rose 0.34% on the day.

05:00 am – New Zealand: Official Cash Rate (NZD)

New Zealand’s central Bank raised its Official Cash Rate by 0.25 percentage points to 2.75% as inflation remains above target. Inflation reached 4.1% in the June quarter, largely because of higher fuel prices. The Bank expects inflation to gradually fall back toward 2% by late 2027. While the economy is showing signs of recovery, growth remains uneven, and household spending is still weak. Policymakers also indicated that interest rates could rise further if inflation pressures remain persistent.

NZD/USD fell 0.71% on the day.

16:45 – Canada: Overnight Rate (CAD)

The Bank of Canada kept its key interest rate unchanged at 2.25% as the economy continues to recover and inflation remains elevated. Canada’s GDP grew strongly in the second quarter, while unemployment improved slightly. However, higher energy prices, new US tariffs, and Canadian countermeasures have increased uncertainty. Inflation is still close to 3%, largely because of gasoline costs. The Bank said it will continue monitoring economic growth and inflation and is prepared to adjust interest rates if needed.

USD/CAD declined by 0.38% on the day.

Friday, September 4

15:30 – Canada: Employment Change (CAD)

Canada’s labor market weakened slightly in August, with employment falling by 42,000 jobs, or 0.2%. The employment rate slipped to 60.8%, while the unemployment rate remained unchanged at 6.4%. Job losses were concentrated among younger workers and in sectors such as public administration and natural resources, while manufacturing added jobs. Average hourly wages rose 2.0% from a year earlier to $37.02, pointing to continued but slower wage growth.

USD/CAD rose 0.27% on the day.

15:30 – USA: Non-Farm Employment Change (USD)

The US labor market strengthened in August, with employers adding 162,000 jobs, well above the recent monthly average. The unemployment rate remained unchanged at 4.1%. Hiring was strongest in restaurants, local government, education, and manufacturing, while the information sector lost jobs. Average hourly earnings rose 0.3% during the month and 3.1% from a year earlier. June and July payroll figures were also revised higher, pointing to stronger employment conditions than previously reported.

EUR/USD slipped 0.16% on the day.

Commodities

1. Crude Oil

1. Crude oil prices rose 9.32% over the past week

2. Brent Oil

1. Brent was up 8.56% compared to the previous week

3. Gold

1. The precious metal Gold (XAUUSD) concluded the week on Friday with a 0.56% weekly loss

4. Silver

1. XAGUSD decreased by 0.22% from last week

Stock Market

1. S&P 500 rose 0.06%

2. DJIA was down 0.60%

3. NASDAQ 100 increased by 0.14%

Top Gainers

1. bioAffinity Technologies, Inc. (BIAF) 213.55%

2. GoPro, Inc. (GPRO) 183.38%

3. Antelope Enterprise Holdings Limited (AEHL) 130.79%

Top Losers

1. Advasa Holdings, Inc. (ADBT) -93.32%

2. Intercont (Cayman) Limited (NCT) -91.79%

3. Rich Sparkle Holdings Limited (ANPA) -82.52%

Company Earnings (August 31 – September 4)

Tuesday, September 1: DELL (Dell Technologies Inc.)

Wednesday, September 2: AVGO (Broadcom Inc)

Thursday, September 3: LULU (lululemon athletica inc.)

Dell reported a very strong second quarter, with revenue jumping 58% to $47 billion and adjusted earnings rising sharply. Growth was driven by booming demand for AI servers, with a record $60.9 billion in AI orders and a $95 billion backlog. Other parts of the business also improved, including traditional servers, storage, and PCs. Dell raised its full-year outlook as a result. However, supply shortages for key components remain a major challenge and could limit growth or pressure margins if conditions worsen.

DELL shares rose 14.88% over the past week.

Broadcom reported very strong third-quarter results, with revenue jumping 86% from a year earlier to $29.6 billion and profits reaching record levels. Growth was driven largely by booming demand for AI chips and networking products, with major customers including Google, Anthropic, OpenAI and Meta. The company also raised its outlook for AI-related revenue in the coming years. However, Broadcom warned that supply constraints, data-center capacity, and rising component costs could delay some projects and put pressure on profit margins.

AVGO shares fell 2.95% over the past week.

Lululemon reported weaker second-quarter results, with revenue falling 4% and comparable sales dropping 10%. The company also lowered its full-year outlook as demand weakened, particularly for leggings and accessories. Management expects the third quarter to remain challenging, but is responding by focusing on better-selling products, increasing marketing, and cutting costs. Despite the slowdown, Lululemon still ended the quarter with a strong cash position and continued buying back shares.

LULU shares declined 16.72% over the past week.

Conclusion

Overall, the week highlighted a mixed global economic backdrop, with stronger US labor and manufacturing data contrasting with softer conditions in Canada and uneven growth elsewhere. Central bank policy remained an important market driver, while commodities and equities delivered mixed performances. Looking ahead, investors are likely to remain focused on inflation, interest-rate expectations, and upcoming economic data for further direction.