Fed Chair Jerome Powell said the data will decide whether the central bank can cut rates in September. So all eyes are on the key July jobs report Friday, as the U.S. added only 73,000 jobs for the month and the unemployment rate rose to 4.

The latest employment report showed that 73,000 jobs were added in July, up from 14,000 in June but lower than the expected 106,000 addition.

The unemployment rate rose from 4.1% to 4.2%, a disappointing statistic after economists estimated that 105,000 jobs would be added in July. "The cracks in the labor market have widened substantially and add further pressure on the Federal Reserve to lower interest rates,