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

Last week saw two big headlines dominate the conversation. First, the explosion of Meta's Muse and its wearable AI "Charm," then Chinese president Xi Jinping's state visit to Washington — both closely watched by investors for their implications on both the AI trade and the state of play between the world's two largest economies.

Nevertheless, they didn't do much to markets for the week, with stocks holding mostly steady despite all the headlines and market forces swirling around.

This week, however, will pivot back to the earnings calendar, with Wednesday having the biggest event.

Memory giant Micron ( MU ) reports fiscal fourth quarter earnings. After the waffling of the AI infrastructure trade over the past two weeks, investors will be looking for signs of continued demand in the memory trade, which has emerged as one of the most significant bottlenecks for the AI build-out.

Elsewhere in the calendar, Nike ( NKE ) reports on Thursday, where embattled CEO Elliott Hill will look to assuage concerns from investors that Nike has lost its spark. One thing that'll be hot on everyone's minds: French soccer star Kylian Mbappé's decision to leave Nike and join the team at On ( ON ), a tough loss for the American sportswear giant.

On the economic data front, it's jobs week! Last month's report of 162,000 jobs added in August — roughly three times expectations — has set a high bar for the September numbers, where economists are looking for 100,000 jobs added in Friday's report. Also on the calendar is PCE inflation data on Wednesday. As the Fed's preferred metric, the PCE data is set to be closely watched for a read on whether the FOMC will indeed hike rates again in 2026.

We have to hand it to them: Last week was Meta's week.

Meta ( META ) CEO Mark Zuckerberg laid out his vision for the company's future during its Meta Connect conference on Wednesday, and it's all about Muse .

The social media giant's new AI agent has quickly jumped to the top of both Apple's App Store and Google's Play Store, and, according to Zuckerberg, millions of people are using it.

During Connect, Meta chief AI officer Alexandr Wang demonstrated a number of use cases for Muse, ranging from the mundane, like scheduling meetings, to more impressive feats like negotiating better rates for cable service and making purchases across multiple services.

Meta is also bringing Muse to its next-generation Meta VR Glasses , allowing you to speak to a digital avatar of your agent, as well as to its Muse Charm. A handheld, purpose-built device, the Muse Charm lets you interact with your Muse agent without a smartphone or smart glasses.