Market Summary
Equities are trading lower at midday on the first trading day of September, with the S&P 500 (7657.91, -28.23, -0.37%), the Dow Jones Industrial Average (52972.09, -213.81, -0.40%), and the Nasdaq Composite (26249.48, -142.46, -0.54%) all in negative territory as rising global bond yields and a renewed climb in crude oil pressure risk assets. The session has improved markedly from its opening lows — the Nasdaq was down as much as 1.1% shortly after the open — as semiconductor stocks and mega-caps claw back a portion of their early losses.
The dominant theme remains inflation and interest-rate risk. Sovereign yields around the world hit fresh multi-year highs overnight (Japan’s 10-yr JGB touched 3.00% for the first time since 1996, the UK 10-yr gilt reached 5.14%, and the German 10-yr bund hit 3.36%), while WTI crude oil pushed toward $88/bbl amid ongoing U.S.-Iran tensions. The CME FedWatch Tool now assigns a 66.2% probability to a 25-basis-point hike at the September 16 FOMC meeting, sharply higher than the 39.6% probability priced in just a week ago — a shift that has weighed heavily on growth and technology names.
Sector rotation is pronounced, with defensive groups — Consumer Staples, Health Care, and Utilities — outperforming alongside Energy, which continues to benefit from higher oil prices. Growth-sensitive sectors, led by Consumer Discretionary and Information Technology, remain the primary laggards, though Apple’s 2.31% gain amid its CEO transition is helping offset broader semiconductor weakness.
Market Snapshot
| Index | Level | Change | % Change |
|—|—|—|—|
| Dow Jones Industrial Average | 52972.09 | -213.81 | -0.40% |
| Nasdaq Composite | 26249.48 | -142.46 | -0.54% |
| S&P 500 | 7657.91 | -28.23 | -0.37% |
Breadth (NYSE): Advancers 939 | Decliners 1657 | Volume 238.12 mln
Breadth (Nasdaq): Advancers 1260 | Decliners 2828 | Volume 3.31 bln
WaveFinder Breadth Metrics:
- Primary Sentiment: Very Bullish | 4% Sentiment: Bearish | 40 SMA Sentiment: Bearish
- Primary Bulls: 1032 | Bears: 855
- 4% Bulls: 55 | Bears: 148
- Above 20-day SMA: 7% | Above 40-day SMA: 40.8%
- 9-Month Bulls: 7 | Bears: 12 | Bull Follow-Through: 17.65%
Breadth remains negative at the index level despite the “Very Bullish” primary sentiment read, underscoring narrow participation with only 7% of names above their 20-day moving average.
Sector Performance
Strong:
1. Energy — +0.9% (benefiting from higher crude oil prices)
2. Consumer Staples — +0.9%
3. Health Care — +0.7%
4. Utilities — +0.7%
Weak:
5. Information Technology — -0.4% (improved from -0.9% earlier in the session as semiconductors narrowed losses; PHLX Semiconductor Index -1.5%, off its worst level of -2.2%)
6. Financials — not separately quantified at midday
7. Real Estate — not separately quantified at midday
8. Materials — categorized weak, no specific % provided
9. Industrials — categorized weak, no specific % provided
10. Communication Services — categorized weak, no specific % provided
11. Consumer Discretionary — -1.6% (worst performer, pressured by Tesla’s 2.46% decline)
Note: Briefing.com’s Industry Watch confirms four sectors “Strong” (Energy, Consumer Staples, Health Care, Utilities) and five “Weak” (Consumer Discretionary, Information Technology, Communication Services, Industrials, Materials); precise midday percentages were not disclosed for all groups.
Key Earnings & Movers
- Apple (AAPL) — $324.17, +7.32 (+2.31%): Rallying as John Ternus officially assumes the CEO role today, succeeding Tim Cook, who remains as executive chairman. Investors are optimistic about a renewed product/innovation cycle, including AI capability expansion and an upcoming foldable iPhone.
- NVIDIA (NVDA) — $220.11, -0.67 (-0.30%): Paring earlier losses as semiconductor weakness moderates.
- Intel (INTC) — $89.20, -0.31 (-0.35%): Also recovering toward its flat line after early pressure.
- Tesla (TSLA) — $358.91, -9.04 (-2.46%): Giving back a portion of Monday’s sharp gains, weighing on Consumer Discretionary.
- Novartis (NVS) — $160.43: Trading sharply higher after remibrutinib met the primary endpoint in both Phase III REMODEL trials for relapsing multiple sclerosis.
- Yext (YEXT) — +1% (off session highs): Gained after Q2 (July) results showed revenue down 1.8% yr/yr to $111.1 mln (in line) but EPS above estimate; adjusted EBITDA rose 29% yr/yr to $34 mln with margin expanding to 31% from 23%, driven by an enterprise-mix shift and AI-search positioning.
Stock Spotlight
Novartis (NVS) is the standout mover of the session after announcing that its BTK inhibitor remibrutinib met the primary endpoint in both Phase III REMODEL trials for relapsing multiple sclerosis, significantly reducing annualized relapse rates versus teriflunomide while also demonstrating superiority across key secondary endpoints, including inflammatory MRI lesions. The two independently successful, identically designed trials (approximately 2,000 adults combined) materially de-risk the program from a regulatory standpoint. Importantly, the drug was well tolerated with no liver-safety signal — a notable point of differentiation given liver-toxicity concerns associated with the broader BTK-inhibitor class.
That said, the disability-progression data remain less definitive: the three-month confirmed disability-progression endpoint did not reach statistical significance, and the positive six-month result stemmed from a preplanned pooled analysis rather than independent trial success. Full data — including absolute relapse rates, MRI lesion counts, and complete safety tables — won’t be available until the late-breaking presentation at MSToronto 2026 (October 21-23), which will be the key catalyst for assessing remibrutinib’s competitive positioning against existing high-efficacy MS therapies. NVS shares are trading at $160.43, above their 50- and 200-day moving averages but still below the 52-week high of $170.46.
Bond Market & Treasuries
Treasuries have trimmed early losses after notching fresh 2026 highs in yields across the 10-year and shorter tenors overnight. As of the 10:26 ET update:
- 2-yr: 4.36% (+1 bp)
- 3-yr: 4.42% (+1 bp)
- 5-yr: 4.51%-4.52% (+1 bp)
- 10-yr: 4.76% (unchanged), -1/32 in price
- 30-yr: 5.24% (-1 bp)
The 10-year note yield had climbed as high as 4.80% earlier in the session — up 63 basis points year-to-date and the highest level since January 2025 — before easing. Key drivers include the global rise in sovereign yields (Japan’s 10-yr JGB at 2.99% after touching 3.00%, the UK 10-yr gilt at 5.14%, the German 10-yr bund at 3.36%), weaker-than-expected U.S. data (ISM Manufacturing 54.6% vs. 55.3% consensus; Construction Spending -0.5% vs. +0.2% consensus), and mounting expectations for a September Fed rate hike, now priced at 66.2% probability versus 39.6% a week ago.
Commodities
- Crude Oil: Trading near $88/bbl intraday, having touched $88.37 (+3.0%) earlier before paring gains; Monday’s settlement was $85.83 (+2.45, +2.9%). Continued U.S.-Iran tensions, including reports of attacks on cargo ships in the Strait of Hormuz, remain the primary driver.
- Natural Gas: $2.93 (+0.04) — prior session close.
- Gold: $4,479.80 (-48.60) — prior session close.
- Silver: $66.95 (-0.73) — prior session close.
- Copper: $6.69 (+0.03) — prior session close.
Overseas Markets
Europe (prior session, Aug 31): DAX -1.1%, CAC -0.8%, FTSE closed.
Asia (prior session, Aug 31): Nikkei -0.1%, Hang Seng -0.1%, Shanghai +0.9%.
Overnight/early-session developments feeding into today’s action included: China’s RatingDog Manufacturing PMI at 51.5 (better than the 51.0 expected), Eurozone Manufacturing PMI at 52.7 (aided by a stronger-than-expected German print of 54.3), Japan’s Q2 Capital Spending up 1.6% yr/yr (vs. -0.2% expected), and Japan’s August Manufacturing PMI at 54.9. South Korea posted an August trade surplus of $34.75 bln (vs. $30.70 bln expected), while Australia’s Manufacturing PMI came in at 52.0, as expected. ECB policymaker Rehn warned that the Iran conflict could keep inflation elevated, reinforcing the global rate-hike narrative pressuring sovereign bonds.
Economic Data
- ISM Manufacturing Index (August): 54.6% vs. 55.3% consensus, down from 55.6% in July — signals expansion but at a slower pace; weakness was broad-based across categories except prices, which rose at the same pace as July.
- Construction Spending (July): -0.5% m/m vs. +0.2% consensus, following an upwardly revised unchanged reading (from -0.1%) in June; down 3.8% yr/yr, with particular weakness in residential/single-family construction amid higher financing costs.
- S&P Global U.S. Manufacturing PMI (August, final): Revised up to 53.9 from the flash reading of 53.2, matching July’s final level.
- JOLTS – Job Openings (July): 7.271 mln vs. 7.390 mln consensus, though June was revised down to 7.182 mln from 7.359 mln.
Collectively, the data point to a moderating pace of manufacturing growth and a softer labor market, even as inflationary pressure (via oil) and rate-hike expectations continue to dominate market pricing.
Looking Ahead
- FOMC Meeting — September 16: Markets are now pricing a 66.2% probability of a 25-basis-point rate hike, up sharply from 39.6% a week ago; this will remain the key macro focal point in the sessions ahead.
- Novartis (NVS): Full REMODEL trial data for remibrutinib will be presented at MSToronto 2026 (October 21-23), followed by an investor call — a key catalyst for the stock’s MS franchise.
- Ongoing themes: Continued monitoring of crude oil prices amid U.S.-Iran tensions and the trajectory of global sovereign bond yields, both of which remain primary swing factors for equity sentiment into the September seasonal window historically regarded as the weakest month for stocks.