S&P 500 – 6,481.50 (-0.32%)

Dow Jones – 45,400.86 (-0.48%)

NASDAQ – 21,700.39 (-0.034%)

• Flat Market: The S&P 500 rose slightly, while the NASDAQ gained about 1% for the week, recovering from modest declines the prior week. The Dow fell marginally for the second consecutive week. All three major indexes remained within a few tenths of a percentage point below recent record highs.
• Jobs Slump: August’s jobs report showed a gain of just 22,000 positions, well below economists’ expectations of roughly 75,000. The unemployment rate climbed to 4.3%, the highest since 2021. June’s job figures were revised down to a loss of 13,000, marking the first monthly decline since 2020.
• Yield Volatility: Mixed signals on interest rates and tariffs created turbulence in fixed income markets. Overall, U.S. government bond prices rose, pushing yields lower. The 10-year Treasury yield peaked at 4.31% on Tuesday before settling at 4.09% on Friday.
• Fed Rate Outlook: The weak jobs report increased expectations that the Federal Reserve may cut its benchmark rate by 0.25 percentage points on September 17, with a smaller chance of a 0.5-point reduction. CME FedWatch data on Friday showed an 86% probability of a quarter-point cut and a 14% probability of a half-point cut.
• Gold Shines: Gold futures rose for the third consecutive week, reaching a record $3,655 per ounce on Friday afternoon. Prices are up more than 36% year to date, with much of the week’s gains linked to weaker-than-expected jobs data.
• Global Bond Risks: Long-term government bond prices fell in major markets, including Japan and the U.K., driving yields higher midweek. The 30-year U.K. gilt yield hit its highest level since 1998 on Wednesday amid renewed concerns over long-term debt risks.
• Mortgage Relief: The average 30-year mortgage rate dropped sharply from 6.45% on Thursday to 6.29% on Friday, the largest single-day decline since August 2024. Four months ago, the average rate exceeded 7.00%.
• CPI Report Ahead: Thursday’s Consumer Price Index release will provide one of the final key data points ahead of the Fed’s September 17 meeting. The last CPI report showed inflation holding steady at an annual rate of 2.7% in July.
• Oil Prices Fall: Weaker U.S. jobs data dampened energy demand outlook, while OPEC+ and allied producers meet over the weekend amid swelling supply. Brent crude futures: $65.50 per barrel, down $1.49 (2.22%). U.S. West Texas Intermediate: $61.87 per barrel, down $1.61 (2.54%).
• DocuSign (DOCU): Stock rose after earnings beat and raised guidance.
• Lululemon (LULU): Slumped after cutting annual profit and sales forecasts.
• Broadcom (AVGO): Jumped after beating earnings; disclosed AI chip collaboration with OpenAI.
• Alphabet (GOOG): Shares slightly down pre-market but extended rally toward $3 trillion market cap.
• Tesla (TSLA): Proposed $1 trillion CEO pay package for Elon Musk tied to ambitious performance targets.
• Bitcoin (/BTC): Gained 2.4%, testing support near $110,000.
• Kenvue (KVUE): Fell 12% amid Wall Street Journal report linking Tylenol to autism.
• Quanex Building Products (NX): Dropped 13% after weak Q3 earnings and lowered FY guidance.
• Campbell’s (CPB): Rose over 3% after Q3 report; week-to-date gain nearly 6%, still down 19% YTD.
• Caleres (CAL): Surged 9% following mixed Q2 results; rebounded after prior 5% drop.

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"We believe this was the smart move by the Board, as the biggest asset for Tesla is Musk… This is a crucial time for Tesla, with autonomous technology and robotics front and center.” 

- Wedbush Securities analyst Dan Ives 

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Notable Stocks

• Alphabet (GOOGL)
• Tesla (TSLA)
• Broadcom (AVGO)
• Apple (AAPL)
• Nvidia (NVDA)

Weekly Notables

Tesla Shares Rise as Board Proposes $1 Trillion Pay Package for Elon Musk

Tesla (TSLA) shares surged on Friday after the electric-vehicle maker unveiled a staggering new compensation plan for CEO Elon Musk. Filed with the Securities and Exchange Commission, the proposal could award Musk roughly $1 trillion if he meets a series of ambitious performance milestones over the next decade. Under the plan, Musk would be eligible for the massive payout if Tesla’s market capitalization reaches an unprecedented $8.5 trillion and if the company successfully deploys one million of its anticipated “Robotaxis” into commercial operation. The plan also includes additional milestones tied to financial performance and product execution, reflecting Tesla’s goal of cementing its leadership in the global transition toward electric and autonomous vehicles.

Broadcom Shares Surge on Strong Earnings and $10 Billion Mystery AI Order

Broadcom (AVGO) shares jumped Thursday after the semiconductor giant beat third-quarter earnings and revenue estimates and announced a $10 billion order from an unnamed AI customer. Adjusted EPS came in at $1.69 versus the $1.65 consensus, while revenue rose 22% year-over-year to $15.96 billion, topping expectations. CEO Hock Tan confirmed the order involves custom AI processors (XPUs) and will drive shipments starting in 2026. Broadcom’s AI revenue jumped 63% to $5.2 billion in Q3, with semiconductor solutions and infrastructure software also showing strong gains.

What to Watch Next Week

Apple is expected to unveil the iPhone 17 on Tuesday. That same day brings earnings from Oracle, AeroVironment and GameStop. Next week also brings two closely watched inflation readings: the Producer Price Index on Wednesday and the Consumer Price Index on Thursday. On Thursday, Kroger and Adobe report results. There could be possible tariff news on Friday—potentially the long-anticipated duties on semiconductor imports—which has been an overhang on Wall Street for weeks.

Economic: 

• Monday (9/8): Consumer Credit
• Tuesday (9/9): NFIB Small Business Optimism
• Wednesday (9/10): MBA Mortgage Applications Index, Producer Price Index (PPI), Core PPI, Wholesale Inventories
• Thursday (9/11): Continuing Claims, Initial Claims, Consumer Price Index (CPI), Core CPI
• Friday (9/12): U of M Consumer Sentiment, Current Conditions, 1yr Inflation, 5-10 yr Inflation

Earnings:

• Monday (Sep. 8): Caseys General Stores Inc. (CASY)
• Tuesday (Sep. 9): Core & Main Inc. (CNM), Sailpoint Inc. (SAIL), Oracle Corp. (ORCL), Synopsis Inc. (SNPS), Rubrik Inc (RBRK), GameStop Corp. (GME)
• Wednesday (Sep. 10): Chewy Inc. (CHWY), Manchester United PLC (MANU)
• Thursday (Sep. 11): Kroger Co. (KR), Adobe Inc. (ADBE), RH (RH)
• Friday (Sep. 12): None