The U.S. employment report for August, showing 162,000 new jobs added and coming in well above forecasts, has put Wall Street on high alert. With a critical Federal Reserve meeting approaching, the stronger-than-expected numbers have drawn even more attention than usual.

Fed Chair Kevin Warsh has moved away from forward guidance and now leans more on market signals, leaving investors with a cloudier picture of where monetary policy is headed. That shift makes the next two weeks of economic data especially consequential.

Looking ahead, producer price figures and initial jobless claims are due next Thursday, followed by the consumer inflation index a week later on the same day. Warsh struck a hawkish tone at the Jackson Hole symposium a few weeks ago, but Fed Governor Christopher Waller said on Thursday that he would back holding rates steady at the upcoming meeting if the inflation data cooperates.

Inflation remains the central focus for the Fed, yet the market's reaction to this latest jobs report shows that other indicators are just as influential in shaping investor expectations. Markets now price in a 60% probability of a rate hike this month, up from 52% before the data was released.