S&P 500 – 6,688.46 (+0.41%)

Dow Jones – 46,397.89 (+0.18%)

NASDAQ – 22,660.01 (+0.30%)

• Market Activity: U.S. stocks edged higher Tuesday, with the Dow, S&P 500, and Nasdaq all posting gains, as investors weighed President Trump’s new tariffs on lumber, furniture, and drugs against the risk of the first federal government shutdown in seven years.
• Labor Market Freeze: Job Growth Slows as Openings and Quits Remain Flat: The U.S. labor market showed minimal movement in August. Job openings edged up slightly to 7.23 million from 7.21 million in July, while the hiring rate fell to 3.2%, the lowest since June 2024. The quit rate also dropped to its lowest level this year, signaling that workers are hesitant to change jobs amid ongoing economic uncertainty.
• Pfizer Announces $70B Investment, Secures Tariff Reprieve and TrumpRx Rollout: Pfizer CEO Albert Bourla confirmed the company obtained a three-year grace period from President Trump’s planned pharmaceutical tariffs, alongside commitments to lower certain U.S. drug prices. Bourla also announced a $70 billion investment in research, development, and domestic manufacturing over the coming years, positioning Pfizer as a key partner in the administration’s initiative to bolster U.S.-based pharmaceutical production.
• EA Set for $55 Billion Privatization in Historic Video Game Deal: Electronic Arts (EA), the studio behind major franchises like Madden NFL, The Sims, and Battlefield, is poised to go private in a $55 billion leveraged buyout, the largest in history. The deal ends EA’s 36-year run as a publicly traded company and highlights a wave of consolidation in the gaming industry. Private equity firm Silver Lake Partners, Saudi Arabia’s Public Investment Fund, and Affinity Partners will lead the acquisition.
• Alibaba Surges as AI Expansion and Cloud Initiatives Drive Investor Optimism: Alibaba’s U.S.-listed shares climbed sharply, extending a year-to-date rally of over 102%, fueled by the company’s aggressive push into AI and cloud services. CEO Eddie Wu unveiled new AI partnerships and initiatives at a recent cloud conference, sparking strong investor enthusiasm and a surge in analyst price targets.
• Jennifer Garner’s Once Upon a Farm Posts Strong Revenue Ahead of NYSE IPO: Organic baby food company Once Upon a Farm, co-founded by Jennifer Garner, reported $110.6 million in revenue for the six months ended June 30, up from $65.8 million a year earlier. The company is preparing for a NYSE debut under the ticker OFRM, drawing strong investor interest amid a busy U.S. IPO market.
• Gold Hits Record Above $3,800 as Bond Yields Decline and Dollar Weakens: Gold surged to a new all-time high of $3,833.59 per ounce, fueled by six consecutive weekly gains. The rally comes amid falling U.S. Treasury yields and a softer U.S. dollar against major peers, driving renewed demand for bullion as a safe-haven asset.
• WTI Crude Slips on Expected OPEC+ Production Increase: WTI crude prices declined amid market expectations that OPEC+ will vote to boost oil production this week, putting downward pressure on energy prices.
• S&P 500 on Track for Best September in 15 Years: According to Bloomberg, the S&P 500 is set for its strongest September performance since 2010, supported by investor optimism around AI growth and recent Federal Reserve rate cuts.
• US Consumer Confidence Falls as Inflation and Job Worries Mount: The Conference Board’s Consumer Confidence Index declined 3.6 points to 94.2 in September, reflecting growing concerns about inflation and future employment. The Present Situation Index, tracking views on current business and labor market conditions, fell 7 points to 125.4.
• Pending Home Sales Jump in August, Defying Expectations: The Pending Home Sales Index rose 4% to 74.7 in August, surpassing economists’ expectations of a 0.4% gain. A level of 100 is equivalent to contract activity in 2001.
• Dallas Fed Manufacturing Index Shows Weakness in Texas: Texas manufacturing activity declined in September, with the Dallas Fed General Business Activity Index falling to -8.7, worse than the expected -1 and below August’s -1.8. Texas accounts for over 10% of U.S. manufacturing output, highlighting regional softness.
• Trump Announces 100% Tariff on Overseas Movies: President Donald Trump declared Monday that he plans to impose 100% tariffs on films produced abroad, signaling further trade tensions impacting the entertainment sector.
• Toyota Posts Eighth Consecutive Month of Global Sales Growth: Toyota (TM) reported worldwide deliveries of nearly 845,000 vehicles in August, a 2.2% increase year-over-year, driven by strong demand in the U.S. market.
• MoonLake Immunotherapeutics Shares Fall After Disappointing Trial Data: Shares of MoonLake Immunotherapeutics (MLTX) dropped following the release of underwhelming clinical trial results, disappointing investors.
• Cannabis Stocks Surge After Trump Endorses CBD for Seniors: Shares of major cannabis companies, including Canopy Growth (CGC), Tilray (TLRY), Cronos (CRON), and Aurora (ACB), rallied after President Trump highlighted the potential benefits of CBD for senior healthcare in a public video.
• GSK and AstraZeneca Announce Leadership Changes and U.S. Expansion: GSK (GSK) shares rose after CEO Emma Walmsley announced she will step down in December, with Luke Miels taking over. AstraZeneca (AZN) climbed following plans for a direct U.S. listing and a $50 billion investment in U.S. manufacturing.
• Nike Wins on Earnings: Nike (NKE) reported its fiscal first quarter results on Tuesday after market close that beat expectations. The company reported adjusted earnings per share that came in at $0.49 compared to Wall Street analyst estimates for $0.28, according to data from Bloomberg. Revenue increased 1% year-over-year to $11.7. billion, higher than $11.02 billion that was expected. Revenue fell 1% over the prior year when adjusted for currency impacts.
• Alibaba Advances on AI and Cloud Analyst Upgrades: Shares of Alibaba (BABA, 9988.HK) continued upward after bullish analyst commentary highlighted the company’s AI and cloud growth momentum.
• Beyond Meat Shares Plunge to Record Low: Beyond Meat (BYND) stock fell to a record low after launching an exchange offer for convertible bonds, aiming to reduce over $800 million in debt.
• CoreWeave Stock Surges on $14.2B Meta Deal: CoreWeave (CRWV) shares jumped following a $14.2 billion contract with Meta (META), signaling high and growing demand for AI compute capacity.
• Fubo Shareholders Approve Hulu Live TV Merger: Fubo shareholders voted to approve a merger with Hulu Live TV, a Disney (DIS) subsidiary, bringing the deal closer to completion and reshaping the streaming market.
• Nvidia Shares Hit Fresh Record: Shares of Nvidia (NVDA) reached all-time highs, supported by robust AI demand and continued investor optimism.
• Spotify CEO Daniel Ek Steps Down: Spotify (SPOT) announced that CEO Daniel Ek will step down on January 1, with two executives taking over leadership of the music streaming platform.
• Robinhood Surges on Record Activity in Prediction Markets: Robinhood (HOOD) shares climbed after CEO Vlad Tenev revealed that the platform’s prediction markets surpassed 4 billion contracts traded.
• Lam Research Upgraded Following Deutsche Bank Rating Boost: Shares of Lam Research (LRCX) rose after Deutsche Bank upgraded the stock to Buy from Hold, citing stronger growth prospects.
• Novo Nordisk Falls on Slower U.S. Weight-Loss Prescription Growth: Novo Nordisk (NVO) declined after Morgan Stanley cut its rating to Underweight, noting slower U.S. GLP-1 prescription growth and increased competition.
• Bitcoin Rebounds, Lifting Crypto-Related Stocks: Bitcoin (/BTC) climbed this week, helping Coinbase (COIN) and MicroStrategy (MSTR) recover from recent weakness.
• Celsius Holdings Gains on Morgan Stanley Upgrade: Celsius Holdings (CELH) rallied after Morgan Stanley upgraded the stock to Overweight, citing stronger-than-expected top-line growth.
• Wolfspeed Surges After Chapter 11 Exit: Wolfspeed (WOLF) shares jumped following the company’s successful exit from Chapter 11 bankruptcy, with management emphasizing “ample liquidity” to meet customer demand.
• Vail Resorts Falls on Wider-Than-Expected Loss: Vail Resorts (MTN) declined after reporting a larger quarterly adjusted loss and a 3% drop in pass product sales on a unit basis.
• EchoStar Rises Amid Verizon Talks: EchoStar (SATS) rallied after Bloomberg reported that Verizon (VZ) is in discussions to acquire portions of its wireless spectrum.
• Freeport-McMoRan Advances Following Bank of America Upgrade: Freeport-McMoRan (FCX) rose after Bank of America upgraded the stock to Buy, citing confidence that current valuations account for risks tied to its Grasberg mine suspension in Indonesia.
• Markets Brace for Potential Government Shutdown: Markets are closely watching the federal funding deadline, as President Trump and Republicans failed to reach an agreement with Democrats. Vice President JD Vance said, “I think we're headed to a shutdown.” Lawmakers have until 12:01 a.m. ET Wednesday, with Polymarket placing the odds at 85%.

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“Yikes. The official U.S. ‘hiring rate’ fell to 3.2% in August,” Heather Long, chief economist at Navy Federal Credit Union, wrote on X. She called the pace of hiring “anemic,” warning that Americans increasingly feel stuck in their jobs. “The job market is frozen. And it appears to be getting worse.”

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Notable Stocks

• NVIDIA (NVDA)
• Spotify (SPOT)
• Pfizer (PFE) 
• Electronic Arts (EA)
• Intel (INTC)

Weekly Notables

Pfizer Secures Trump Deal: Lower Drug Prices, Delayed Tariffs, and TrumpRx Expansion

Pfizer CEO Albert Bourla said the company secured a three-year grace period from President Donald Trump’s planned pharmaceutical tariffs in a deal that also requires lowering some U.S. drug prices. Alongside the agreement, Bourla announced a $70 billion investment in research, development, and U.S. manufacturing over the next several years, positioning Pfizer as a central partner in the administration’s push to bring drug production back home. Pfizer confirmed that most of its primary care medicines—including the blood thinner Eliquis, pneumonia vaccine Prevnar, and Covid treatments—will be offered on TrumpRx, the new direct-to-consumer platform aimed at lowering costs. Bourla said the deal provides long-sought “certainty and stability” on tariffs and pricing after years of pressure on valuations.

Alibaba Stock Rises on AI Spending Surge and Cloud Growth Momentum

Alibaba’s U.S.-listed shares climbed this week, extending a year-to-date rally of over 102% as Wall Street cheered the Chinese tech giant’s aggressive push into artificial intelligence and cloud services.

At its recent cloud conference, CEO Eddie Wu pledged to exceed the company’s already-massive $53 billion, three-year AI infrastructure plan and unveiled a new partnership with Nvidia on “physical AI,” sparking the stock’s highest levels since October 2021.

Earnings Spotlight: Conagra Brands (NYSE: CAG)

Packaged foods company Conagra Brands (NYSE:CAG) will be reporting earnings today before the bell. The company missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $2.78 billion, down 4.3% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates. This quarter, analysts are expecting Conagra’s revenue to decline 6.5% year on year to $2.61 billion, a further deceleration from the 3.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.

What Else to Watch:

Investors are closely tracking the fast-approaching deadline for a federal funding agreement. Markets brace for a government shutdown after President Trump and Republicans met with Democrats on Monday but failed to reach a funding deal. Vice President JD Vance said, “I think we're headed to a shutdown.” Lawmakers have until 12:01 a.m. ET Wednesday to act, with Polymarket putting the odds at 85%.

Looking ahead to Friday, economists anticipate the latest U.S. jobs report will show employment growth of roughly 40,000—a rebound from August’s weak gain of 22,000 but still well below the year-long average. By comparison, monthly job additions exceeded 100,000 as recently as April and topped 200,000 in November and December of last year.

Wednesday (Oct. 01): ADP Employment Change, Construction Spending, EIA Crude Oil Inventories, ISM Manufacturing Index, MBA Mortgage Applications Index. Earnings from Acuity Inc. (AYI), Cal-Maine Foods Inc. (CALM), Conagra Brands Inc. (CAG), Levi Strauss & Co. (LEVI), RPM International Inc. (RPM).

Thursday (Oct. 02): Continuing Claims, EIA Natural Gas Inventories, Factory Orders, Initial Claims. Earnings from AngioDynamics Inc. (ANGO), Trilogy Metals (TMQ).

Friday (Oct. 03): Nonfarm Payrolls, Average Workweek, Average Hourly Earnings, Ism Services, Unemployment Rate.