Investors are preparing for two major economic events this week that could significantly impact market direction.Broadcom, the semiconductor giant and sixth-largest U.S.company by market capitalization, is set to report its quarterly earnings as the final major chipmaker to disclose results for the quarter.

This comes amid a historic rally in semiconductor stocks, with the Philadelphia SE Semiconductor Index jumping approximately 80% since the March 30 market low and Broadcom shares climbing 45% during the same period.

The company's results will serve as a critical test for continued optimism surrounding artificial intelligence and semiconductor stocks, particularly given the massive AI infrastructure buildout driving chipmaker profits.

Analysts are watching closely to see if Broadcom can maintain momentum after other AI-linked companies have recently provided guidance that cooled investor sentiment.Additionally, investors will be monitoring next Friday's U.S.jobs report, one of the first major economic indicators that will inform Federal Reserve Chairman Kevin Warsh's policy decisions.The May payrolls report is expected to show an unemployment rate of 4.3% with 96,000 jobs added, according to a Reuters poll.

A stronger-than-expected reading of more than 150,000 jobs could fuel concerns about an overheating economy and potentially drive Treasury yields higher, which would be unwelcome for stocks given existing inflation fears.Rising Treasury yields and persistent inflation remain key risks for the ongoing U.S.stock market rally, with the S&P 500 up 19% since the March low.