S&P 500 – 6,415.54 (-0.69%)

Dow Jones – 45,295.81 (-0.55%)

NASDAQ – 21,279.63 (-0.82%)

• Market Performance: U.S. stocks sank on Tuesday but finished off their session lows, kicking off what is historically the worst trading month of the year.
• Tariff Ruling: The U.S. Court of Appeals for the Federal Circuit ruled that most tariffs enacted earlier this year exceeded presidential authority under the International Emergency Economic Powers Act of 1977. The decision is scheduled to take effect in October, allowing time for the administration to appeal to the U.S. Supreme Court. The ruling does not impact tariffs on foreign steel, aluminum, and autos, which were imposed separately under national security justifications following Commerce Department investigations.
• U.S. Dollar: The U.S. dollar is strengthening against major global currencies, reflecting safe-haven demand amid market uncertainty.
• Treasury Yields: Treasury yields rose Tuesday, with the 30-year yield climbing 6 basis points to trade around 4.97%, approaching the key 5% threshold for the first time since July. The benchmark 10-year yield also increased, moving close to 4.3%.
• U.S. LNG Exports: U.S. liquefied natural gas (LNG) exports surged to a record 9.33 million metric tons in August as facilities came out of scheduled maintenance and Venture Global’s Plaquemines plant ramped up production, according to preliminary data from financial firm LSEG. This figure surpasses the previous monthly high of 9.25 million tons set in April and exceeds July’s exports of 9.1 million tons, marking another milestone for U.S. LNG shipments.
• Gold: Gold (GC=F) reached levels above the all-time highs seen earlier this spring, trading near $3,600 an ounce. The gains are fueled by expectations that the Federal Reserve may cut rates this month after Chair Jerome Powell indicated openness to a potential move.
• WTI Crude Oil: WTI crude oil advanced 2.3% early Tuesday as investors weighed risks to Russian supply amid escalating Ukrainian drone strikes targeting energy infrastructure. The rally also comes ahead of this weekend’s OPEC meeting, where analysts expect no changes in production, according to CNBC.
• Gas: Natural gas futures fell by more than 3% early Tuesday after Russia said it signed a major agreement for a natural gas pipeline with China that will more closely tie the two countries' energy industries together.
• U.S. Manufacturing: The U.S. manufacturing sector showed encouraging signs in August. The final S&P Global Manufacturing PMI rose to 53.0 from 49.8 in July, returning to expansion territory thanks to stronger production and higher new orders. However, tariffs continue to contribute to rising input costs. The ISM Manufacturing PMI also improved, climbing to 48.7 from July’s 46.8, though it fell slightly short of analyst expectations for 49.2.
• Monetary Policy Outlook: Markets are currently pricing in roughly a 90% chance of a 25 basis point rate cut in September. However, upcoming economic data this week could strengthen the case for a deeper round of easing.
• Tech Stocks Slide: Nvidia (NVDA) and Palantir (PLTR) fell early Tuesday as risk-off sentiment from last week carried over into trading, reflecting investor caution following recent market volatility.
• Cryptocurrency Update: Bitcoin futures (/BTC) fell nearly 4% Friday and ended August down 7.6%, despite hitting a record high on August 14. Futures rebounded slightly in early trading Tuesday. Other cryptocurrencies recently gained versus bitcoin, though it remains unclear if this trend will continue. Crypto-related stocks were mixed, with some showing minor gains while others declined.
• Consumer Goods Strength: Signet Jewelers (SIG) rose after reporting strong earnings and raising its full-year guidance, highlighting resilience in consumer demand despite broader economic uncertainty.
• Meta Platforms Regulatory Action: Meta Platforms (META) slipped after Reuters reported that the company removed several celebrity AI chatbots tied to unauthorized use of celebrity voices and images, raising concerns about privacy and intellectual property compliance.
• Block Downgrade: Block (XYZ) declined following a downgrade from BNP Paribas, which moved the stock from Buy to Hold, reflecting tempered expectations for the company’s near-term performance.
• Tesla Sales Pressure: Tesla (TSLA) fell ahead of the open after Reuters reported a 4% decline in August sales in China, signaling continued pressure in one of its key international markets and potential headwinds for growth.
• PepsiCo Investment Boost: PepsiCo (PEP) jumped after the Wall Street Journal reported that activist investor Elliott Investment Management has built a roughly $4 billion stake in the company, spurring optimism among shareholders.
• Gold and Newmont Gains: Newmont (NMT) climbed as gold prices received support from global uncertainty and expectations for potential interest rate cuts, boosting sentiment in precious metals and related equities.
• Marvell Technology Weakness: Marvell Technology (MRVL) dropped in double digits Friday and fell further on Tuesday after reporting that second-quarter data center revenue rose 69% but missed analyst expectations. Earnings per share and overall revenue were roughly in line with forecasts, but shares are now down about 30% year-to-date.
• Dell Technologies Struggles: Dell Technologies (DELL) fell nearly 9% Friday despite beating quarterly estimates and raising full-year guidance. Q3 earnings guidance missed consensus despite strong growth in its AI server business, prompting investor caution.
• Russell 2000 Outperformance: The Russell 2000® Index (RUT) outperformed other major indexes in August, gaining nearly 7% as rising expectations for potential Federal Reserve rate cuts fueled momentum in smaller-cap stocks.
• CoreWeave Shares Slide Amid Acquisition Concerns: AI data center operator CoreWeave (CRWV) fell 7.8% Tuesday morning. The stock remains up 135% since its March IPO but is down about 49% from its late-June high above $183, putting its $9 billion all-stock acquisition of Core Scientific (CORZ) at risk. 

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"The reason is that India has charged us, until now, such high Tariffs, the most of any country, that our businesses are unable to sell into India. It has been a totally one sided disaster! Also, India buys most of its oil and military products from Russia, very little from the US." - President Trump

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Notable Stocks

• Nvidia (NVDA)
• Intel (INTC)
• Meta Platforms (META)
• PepsiCo (PEP)
• Dell Technologies (DELL)

Weekly Notables

OpenAI to Acquire Product Testing Startup Statsig for $1.1 Billion in All-Stock Deal

OpenAI has announced plans to acquire product testing startup Statsig for $1.1 billion in an all-stock transaction, marking one of the largest acquisitions in the ChatGPT maker’s history. Statsig, founded in 2021, develops tools that allow software developers to test and evaluate new features, identifying potential issues before launch. The platform has been used by employees at OpenAI, Eventbrite, SoundCloud, and other technology firms. Earlier this year, Statsig raised $100 million in a funding round that valued the company at $1.1 billion.

Frontier Rallies as Spirit’s Second Bankruptcy Boosts Market Share Hopes

Frontier Group shares jumped on Tuesday, their best day in over five months, as investors bet the airline will gain ground after rival Spirit Airlines filed for bankruptcy for the second time this year and announced route and fleet cuts. Deutsche Bank upgraded Frontier to Buy, citing its strong route overlap with Spirit and positioning to capture market share. Spirit, which exited its first bankruptcy in March, said it will keep flying but shrink operations to manage debt and lease costs.

Earnings Spotlight: Salesforce (CRM)

CRM software giant Salesforce (NYSE: CRM) will be reporting earnings this Wednesday after market hours. Here’s what you need to know.

Salesforce beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $9.83 billion, up 7.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates. This quarter, analysts are expecting Salesforce’s revenue to grow 8.7% year on year to $10.14 billion, in line with the 8.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.78 per share.