2 key checks for the AI trade and the economy: What to watch this week

Key Points:

• Meta's new AI agent, Muse, and its wearable device "Charm" gained significant attention last week, with millions of users adopting the technology; the company aims to monetize Muse through transaction fees and emphasizes privacy and security as key competitive factors.
• Chinese President Xi Jinping's visit to Washington resulted in a two-month extension of the US-China trade truce, providing short-term stability but leaving long-term trade issues unresolved amid ongoing tariff considerations.
• This week’s market focus shifts to earnings reports, notably Micron's fiscal Q4 results on Wednesday, which will offer insights into AI-related memory demand, and Nike's Thursday report amid concerns over the impact of star athlete Kylian Mbappé leaving the brand.
• The September US jobs report, due Friday, faces high expectations following a strong August performance; economists forecast 100,000 new jobs but caution about potential seasonal adjustments and mixed consumer sentiment due to inflation pressures.
• Key economic data this week includes PCE inflation figures on Wednesday, critical for Federal Reserve rate hike decisions, alongside various manufacturing and employment metrics, while several major companies report earnings throughout the week.