S&P 500 – 7,631.47 (-0.71%)

Dow Jones – 52,766.88 (-0.79%)

NASDAQ – 26,099.77 (-1.03%)

• MARKETS START SEPTEMBER UNDER PRESSURE: U.S. stocks started September in the red as a fresh jump in global bond yields weighed on risk appetite, with technology stocks taking some of the biggest hits Tuesday. The 10-year Treasury yield hovered near 4.78%, while the 30-year yield climbed back toward 5.3%, putting additional pressure on rate-sensitive areas of the market. The 10-year yield is now at its highest level in more than a year and a half, while Japan’s 10-year government bond yield hit 3% for the first time since 1996. Yields across the U.K. and euro area are also pushing toward multi-year highs, while gold and bitcoin declined as investors moved into a more defensive posture.
• FED RATE-HIKE FEARS ARE BACK: Deutsche Bank is sounding the alarm on a potentially more hawkish Federal Reserve, with recent comments from policymakers fueling expectations for a September rate hike. Investors are now closely watching incoming labor and economic data for clues about the strength of the U.S. economy and whether the Fed could keep rates higher for longer.
• MICROSOFT GETS ANOTHER BULLISH WALL STREET CALL: Microsoft (MSFT) received another vote of confidence from Wall Street after Bank of America raised its price target to $600, pointing to accelerating cloud growth, improving AI efficiency and stronger returns. The bullish call adds to the growing focus on Microsoft’s ability to turn massive AI investments into stronger cloud growth and profitability.
• SHEIN’S HONG KONG DEBUT FALLS FLAT: Shein’s Hong Kong debut got off to a rocky start, highlighting the growing challenges facing the fast-fashion giant. The weak opening comes as the company navigates intensifying competition from TikTok Shop and Temu, along with increasing pressure around its global business and valuation.
• OIL ADDS MORE FUEL TO THE RISK-OFF MOOD: Oil is adding another layer of pressure to the market as crude prices accelerate higher. Two oil tankers were reportedly attacked while passing through the Strait of Hormuz late Monday, escalating concerns about regional tensions and potential disruptions to global energy supplies. WTI crude is trading near $88 a barrel, adding to inflation worries and reinforcing pressure created by rising bond yields.
• SOFTWARE HAD A HUGE AUGUST — BUT CHIPS LOST MOMENTUM: Software stocks posted their second-best month since 2002, highlighting continued investor appetite for the AI and technology trade. Chip stocks, however, barely held on to a gain in August after climbing nearly 10% by mid-month, showing how quickly momentum has cooled across parts of the semiconductor sector.
• MEDTRONIC JUMPS ON EARNINGS AND GUIDANCE: Medtronic (MDT) jumped after beating quarterly earnings and revenue expectations and raising its fiscal 2027 outlook. The company’s cardiovascular business was a standout, posting 18.9% year-over-year growth and giving investors another reason to remain bullish on the medical-device giant.
• NOVARTIS GETS A BIOTECH BOOST: Novartis (NVS) surged following positive late-stage clinical trial results for its oral multiple sclerosis treatment, giving the pharmaceutical giant a fresh catalyst and fueling optimism around the drug’s potential.
• ALUMIS CRATERS ON DRUG-TRIAL DISAPPOINTMENT: Alumis (ALMS) cratered after disappointing mid-stage results for its lupus drug, underscoring the extreme volatility surrounding biotech stocks. Clinical-trial headlines can quickly send shares soaring or plunging as investors reassess the potential of a company’s drug pipeline.
• NVIDIA SLIPS AS $35B ANTHROPIC DEAL DRAWS SCRUTINY: Nvidia (NVDA) slipped after The Wall Street Journal reported that Anthropic signed a $35 billion cloud deal backed by Nvidia, with Nvidia reportedly holding the data-center lease. The arrangement has drawn scrutiny from some analysts concerned about potential “circular” deals, in which Nvidia helps customers finance purchases of its own technology, adding another layer of debate around the sustainability of AI spending.
• GAP SLIDES AS CONSUMER STOCKS PULL BACK: Gap (GAP) slid as last week’s earnings-fueled rally faded amid broader weakness across consumer stocks. The company is also stepping into the roughly $15 billion accessories market with a handbag collection designed by Reed Krakoff, the designer credited with helping transform Coach into a global accessories powerhouse.
• AON DROPS AFTER $17B USI DEAL: Aon (AON) fell after announcing an agreement to acquire USI Insurance Services for $17 billion, putting the massive transaction firmly in the spotlight as investors weigh the strategic opportunity, price tag and potential impact on the insurance giant.
• CONSUMER STOCKS FEEL THE HEAT: Consumer stocks broadly pulled back as higher Treasury yields raised concerns about borrowing costs and consumer spending. Clothing retailers, airlines, cruise lines and ride-share companies all came under pressure, with Gap dropping 4.8% after its recent post-earnings rally.
• JOBS DATA OFFERS A STABLE READ: The latest Job Openings and Labor Turnover Survey (JOLTS) showed job openings ticking up slightly in July, offering a relatively stable read on the labor market ahead of Friday’s closely watched monthly jobs report. Investors will be looking for signs that hiring is cooling without pointing to a sharp deterioration in the U.S. economy.
• U.S. MANUFACTURING EXTENDS ITS EXPANSION STREAK: The Institute for Supply Management’s (ISM) Manufacturing PMI registered 54.6% in August, marking the eighth consecutive month of expansion for the U.S. manufacturing sector. Growth slowed slightly from the prior month, but the reading remains firmly above the 50% threshold that separates expansion from contraction, giving investors another indication that economic activity remains resilient.

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“Always assume you're as smart as anyone else in the room but never assume that you know as much as they do.”

 — John Ternus (Apple CEO)

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Notable Stocks

• Apple (AAPL)
• Nvidia (NVDA)
• Novarits (NVS)
• Alumis (ALMS)
• Aon (AON)

Weekly Notables

Robotaxi Wars Heat Up as Waymo & Zoox Hit the Gas

The robotaxi race is getting real, with Waymo and Amazon’s Zoox expanding their autonomous vehicle footprints just as Tesla (TSLA) prepares to reveal more about its driverless Cybercab and Robotaxi plans. Waymo is now rolling out paid, fully driverless rides in Denver, San Diego and Tampa, while Zoox plans to begin testing in Houston and San Diego this month with human supervisors on board.

Apple’s New Era Begins with Ternus Taking the Wheel

John Ternus officially takes over as Apple’s CEO Tuesday, stepping into the top job after Tim Cook’s 15-year run. The 51-year-old Apple veteran now takes the reins of a $4.7 trillion powerhouse at a time when the company is facing some serious challenges — especially in artificial intelligence and soaring memory costs.

Earnings Spotlight: Snowflake (SNOW)

Snowflake's earnings outlook is strongly bullish, fueled by a sharp re-acceleration in revenue driven by its enterprise AI initiatives. Following a massive 79% stock price surge over the summer, the company is scheduled to report its fiscal Q2 2027 earnings on Wednesday, September 2, 2026, after the market closes. 

What to Watch Ahead:

September 2: ADP August nonfarm employment, July factory orders, Federal Reserve Beige Book, and expected earnings from Broadcom (AVGO), Snowflake (SNOW), Hewlett-Packard (HPE), NetApp (NTAP), and Five Below (FIVE).
September 3: August ISM Services PMI® and expected earnings from Ciena (CIEN) and lululemon (LULU).
September 4: August nonfarm payrolls and August unemployment rate.
September 7: U.S. markets closed for Labor Day holiday.
September 8: Expected earnings from Casey's General Stores (CASY).