The upcoming nonfarm payrolls report will be a critical determinant of the timing and magnitude of future Fed rate hikes

"The Fed's next policy meeting in September is expected to be closely watched by investors, with incoming inflation, employment and economic growth data likely to play a crucial role in determining whether policymakers maintain their current stance or resume tightening monetary policy."

"This week's nonfarm payrolls for July is a key input into the timing of the eventual tightening cycle. Markets are currently pricing in roughly 35 basis points worth of Fed rate hikes by December, with the focus turning to Friday's jobs report."