Market Beats | US Job Growth Likely Overstatedl; SpaceX to Acquire EchoStar Spectrum in $17 Billion Deal; BYD Expands in Europe With New Models and Showrooms; Alibaba Becomes Chinese Investors’ Top Pick on AI Optimism; JPMorgan Warns Fed Rate Cut Could Spark ‘Sell the News’; US Consumer Borrowing Rises Most in Three Months

—— US Job Growth Likely Overstatedl; SpaceX to Acquire EchoStar Spectrum in $17 Billion Deal; BYD Expands in Europe With New Models and Showrooms; Alibaba Becomes Chinese Investors’ Top Pick on AI Optimism; JPMorgan Warns Fed Rate Cut Could Spark ‘Sell the News’; US Consumer Borrowing Rises Most in Three Months

1. US Job Growth Likely Overstated

Economists expect the Bureau of Labor Statistics (BLS) to announce a major downward revision to payroll figures through March 2025, casting the US labor market in a weaker light than previously reported.

Wells Fargo, Comerica Bank, and Pantheon Macroeconomics forecast that the BLS benchmark revision on Tuesday could reduce the March payroll count by about 800,000 jobs — roughly 67,000 fewer per month on average. Nomura Securities, Bank of America, and the Royal Bank of Canada warn the downgrade could approach 1 million.

Each year, the BLS benchmarks its payroll data against the Quarterly Census of Employment and Wages (QCEW), which is considered more accurate as it’s based on unemployment insurance tax records covering nearly all US jobs. This comes in addition to the regular monthly revisions. While the adjustment is backward-looking, a second consecutive year of sharp downward revisions would illustrate a labor market that cooled much earlier than headline data suggested and would reinforce expectations for the Federal Reserve to begin cutting interest rates.

“A large downward revision to job growth through March 2025 may not impact immediate monetary policy decisions as much as changes in recent months’ data, but it does provide important context on how the economy has been performing,” said Bill Adams, chief economist at Comerica Bank. “And, all else equal, downward revisions increase pressure on the Fed to ease.”

President Donald Trump, a frequent critic of BLS data accuracy, is expected to intensify his attacks if the revisions prove substantial, raising further political tension over official statistics.

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2. SpaceX to Acquire EchoStar Spectrum in $17 Billion Deal

SpaceX, the Elon Musk-backed company and owner of the Starlink satellite network, has agreed to acquire wireless spectrum from EchoStar Corp. in a cash-and-stock deal worth about $17 billion.

The purchase covers EchoStar’s AWS-4 and H-block spectrum licenses, according to a Monday statement. SpaceX will pay up to $8.5 billion in cash and another $8.5 billion in SpaceX stock. The company also agreed to cover about $2 billion in cash interest payments on EchoStar’s debt through November 2027.

EchoStar plans to use the proceeds to retire some of its debt and fund ongoing operations and growth initiatives. Shares of EchoStar surged as much as 64% in premarket trading Monday following the announcement.

The move gives SpaceX greater independence in offering direct-to-device mobile services, beyond its current partnership with T-Mobile. Satellite operators generally need access to terrestrial licenses for such services, and this acquisition secures SpaceX’s position in that market.

Together with EchoStar’s recent spectrum sale to AT&T, the transaction is also expected to resolve inquiries from the US Federal Communications Commission (FCC), according to the company’s statement.

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3. BYD Expands in Europe With New Models and Showrooms

BYD is accelerating its European expansion with new models and a growing retail footprint as it faces a fierce price war in China.

At the Munich auto show, Executive Vice President Stella Li said the automaker is in talks with hundreds of local suppliers and will have more than 1,000 stores in 32 countries across Europe by year-end. BYD now offers 13 models in the region, up from six two years ago. Its latest addition is the Seal 6 DM-i Touring, a plug-in hybrid station wagon with a combined gasoline and battery range of 1,350 kilometers (839 miles).

BYD, Xpeng and Leapmotor are all showcasing their lineups in Germany this week as they push to extend their market-share gains in Europe. While the European Union has imposed tariffs on Chinese EVs, Chinese automakers are countering with more hybrid and combustion models that avoid duties, forging local partnerships, and pledging to build factories in the region. This poses a challenge to Volkswagen and Stellantis, which are cutting costs to protect margins in a stagnant European car market.

Volkswagen is responding with plans to offer more affordable models, including an electric Polo expected to be priced below €25,000 ($29,330) when it launches next year, along with a battery-powered version of its popular T-Cross SUV. It also unveiled new models from its budget Skoda brand.

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4. Alibaba Becomes Chinese Investors’ Top Pick on AI Optimism

Renewed optimism over Alibaba’s artificial intelligence potential has made the stock Chinese investors’ favorite bet.

Last week, mainland investors purchased a combined HK$13.5 billion ($1.7 billion) worth of Alibaba shares through the trading links with Hong Kong — more than for any other stock, according to Bloomberg calculations based on exchange data. The weekly net inflows exceeded totals from recent months and would mark the highest monthly amount since April.

Investor sentiment has improved since the e-commerce giant posted a surge in AI-related revenue for the June quarter, offsetting concerns over its heavy investments in food delivery. The stock has jumped 18% this month, making it the best performer on the Hang Seng Tech Index.

On Monday, Alibaba shares rose as much as 4.7% in Hong Kong after the company released an upgrade of its open-sourced AI model and co-led a funding round in a robotics startup.

Wall Street analysts have also turned more bullish, with at least 20 raising their price targets since the earnings report. Bloomberg data show they expect the stock to climb 17% over the next year from Friday’s close, to HK$160.18.

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5. JPMorgan Warns Fed Rate Cut Could Spark ‘Sell the News’

JPMorgan’s trading desk has cautioned that despite US stocks setting more than 20 record highs this year, the Federal Reserve’s widely anticipated rate cut at its Sept. 17 meeting could curb enthusiasm and trigger a “Sell the News” pullback.

Andrew Tyler, head of global market intelligence at JPMorgan, said the current bull market “feels unstoppable” but noted several risks including inflation, employment, and the trade war. While the S&P 500 has climbed more than 30% since President Donald Trump launched his trade war, investors are increasingly uneasy with tariffs feeding through to prices and the recent weak labor data.

Tyler highlighted that commentary from public and private companies shows more “tariff-induced cost passthrough” is still ahead, and that a rate cut could stimulate labor demand and risk sparking sticky wage inflation.

September is historically the weakest month for US equities, but Bloomberg Intelligence data show the S&P 500 has averaged a 1.2% gain in Septembers when the Fed cut rates outside of a recession, versus a typical 1% decline. Morgan Stanley’s Michael Wilson has also recommended buying dips despite the seasonal weakness.

JPMorgan’s trading desk recommends hedges such as VIX call spreads or VXX longs, alongside boosting exposure to gold as dollar weakness could follow rate cuts.

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6. US Consumer Borrowing Rises Most in Three Months

US consumer borrowing jumped $16 billion in July, the biggest increase in three months, according to Federal Reserve data released Monday. That followed a revised $9.6 billion gain in June, compared with economists’ median estimate of a $10.4 billion rise.

Revolving credit, which includes credit cards, surged $10.5 billion — the largest gain this year. Non-revolving credit, such as auto and education loans, rose $5.5 billion. Mortgages aren’t included in the report. The rise in borrowing coincided with stronger household spending in July, partly driven by higher sales at online retailers and furniture stores. Auto sales also climbed to a three-month high, according to Wards Automotive Group.

At the same time, signs of financial stress are emerging. Borrowing costs remain elevated while wage growth moderates. Rising inflation may also be pushing consumers to rely more on credit to cover daily expenses.

The share of US consumer debt in serious delinquency climbed in the second quarter to the highest since early 2020, as millions of Americans continued to ignore student loan bills.

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7. Bank of America Opens Private Equity Funds

Lenders to luxury fashion retailer Ssense are asking a Canadian court to approve a quick sale of the cash-strapped company, with first bids due in early October.

A group led by Bank of Montreal filed an application to the Quebec Superior Court, saying creditors had lost confidence in Ssense’s ability to oversee operations. Other lenders include Royal Bank of Canada, JPMorgan Chase, National Bank of Canada, and Bank of Nova Scotia, with total debt of about C$145 million ($105 million).

Creditors want the company placed under court supervision via Canada’s Companies’ Creditors Arrangement Act. They are pushing for a fast-track sale process, with potential buyers contacted next week and non-binding bids due by Oct. 6. They’ve also proposed selling inventory this month to raise cash.

Ssense, once a Montreal family-run success story valued at more than C$5 billion in 2021, is now threatened by debt and eroding trust.

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