S&P 500 – 7,718.60 (-0.38%)

Dow Jones – 53,414.25 (-0.51%)

NASDAQ – 26,506.99 (-0.29%)

• MARKETS: U.S. equity markets finished lower Friday after a stronger-than-expected August jobs report pushed investors to increase expectations for additional Federal Reserve rate hikes.
• FED RATE HIKE BETS: Futures markets raised the implied probability of a rate hike this month to roughly 58%, up from about 50% Thursday. UBS economist Andrew Dubinsky said the firm now expects two 25-basis-point hikes, with the first in September and another in December, although weaker inflation readings could delay the second move.
• TREASURY YIELDS: The 2-year Treasury yield, which is particularly sensitive to expectations for short-term interest rates, climbed to approximately 4.37%, while the 10-year yield was little changed near 4.78%.
• GLOBAL MARKETS: Asian equities finished mostly higher overnight, while European markets also advanced. The U.S. dollar strengthened against most major currencies as investors reassessed the interest-rate outlook.
• BITCOIN: Bitcoin surged more than 5% Thursday before climbing to around $82,000 Friday morning, coming within roughly $1,000 of the resistance level that has capped the cryptocurrency since February. The rally faded, however, with Bitcoin falling back below the key $80,000 level.
• JOBS REPORT: U.S. employers added 162,000 jobs in August, significantly above the consensus forecast of 65,000 and the 31,000 average monthly gain over the past year. Leisure and hospitality, local government education, construction and manufacturing accounted for a combined 126,000 new positions. June and July payrolls were also revised higher by a combined 55,000.
• UNEMPLOYMENT: The unemployment rate held steady at 4.1%, compared with expectations for a modest increase to 4.2%, further highlighting the resilience of the labor market.
• SAMSARA: Samsara (IOT) jumped after the fleet-management software company reported strong earnings, helped by growing customer adoption of its AI-powered features.
• ADOBE: Adobe (ADBE) slipped after naming Anil Chakravarthy as its next CEO. Chakravarthy will succeed Shantanu Narayen, who announced his departure in March.
• GOLD: Gold prices fell following the jobs report as rising expectations for higher interest rates weighed on the precious metal.
• CRUDE OIL: WTI crude remained above $90 a barrel and was on track for a weekly gain following renewed skirmishes between Iran and the U.S. With little progress toward a resolution, ship traffic through the Strait also declined Thursday after showing some improvement earlier in the week.
• TYSON FOODS: Tyson Foods (TSN) plunged after cutting its outlook as the company continues to face pressure from the ongoing cattle shortage.

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“Nothing will work unless you do.”  — Maya Angelou

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Notable Stocks

• Apple (AAPL)
• Tesla (TSLA)
• Adobe (ADBE)
• Tyson Foods (TSN)
• Samsara (IOT)

Weekly Notables

Lululemon Stock Sinks After Cutting Forecast as Revenue Declines

Lululemon (LULU) shares plunged as much as 20% in extended trading Friday after the athleisure giant cut its full-year revenue and profit outlook following a disappointing second quarter. The company reported fiscal second-quarter revenue of $2.4 billion, down 4% from a year earlier, while comparable sales fell 9%. Lululemon also lowered its 2026 outlook, now expecting net revenue of $10.35 billion to $10.5 billion, representing a decline of 5% to 7%. Adjusted earnings per share are now expected to come in between $9.48 and $9.73.

Tesla Shares Sink as NHTSA Investigates Cybercab

Tesla (TSLA) shares fell roughly 6% Friday after the National Highway Traffic Safety Administration (NHTSA) opened an investigation into the company’s new Cybercab, raising questions about whether the autonomous vehicle complies with federal safety requirements. The investigation formally began Thursday, the same day Tesla held its Cybercab launch event in Austin. The company said customers will be able to begin booking rides Friday evening as it prepares for an initial limited deployment of the driverless vehicles.

Earnings Spotlight: Adobe (ADBE)

Adobe is scheduled to report its fiscal third-quarter (Q3) 2026 earnings on September 10, 2026, after the market close. Analysts project revenue of approximately $6.69 billion, representing about 12% year-over-year growth. FactSet and other consensus projections expect adjusted earnings per share (EPS) of around $4.48 to $6.08 (non-GAAP variations depending on specific definitions), reflecting continued profit expansion. 

What to Watch Ahead:

September 8: Expected earnings from Casey's General Stores (CASY).
September 9: Expected earnings from Chewy (CHWY).
September 10: ECB rate decision, August PPI, August core PPI, August existing home sales, and expected earnings from Oracle (ORCL), Macy's (M), and Adobe (ADBE).
September 11: August CPI and core CPI and expected earnings from Kroger (KR).