Market Summary — Pre market — 2026-09-02

Market Summary

U.S. equity futures point to a mostly lower open on Wednesday, September 2, with S&P 500 futures trading 4.00 points below fair value and Nasdaq futures down 62.00 points as of 8:02 AM ET, following a sharper pre-dawn reading that had shown S&P futures off 24.00 points and Nasdaq futures down 168.00 points. The cautious tone follows Tuesday’s broad-based retreat, in which the DJIA fell 419.02 points (-0.8%) to 52,766.88, the S&P 500 dropped 54.67 points (-0.7%) to 7,631.47, and the Nasdaq Composite lost 271.11 points (-1.0%) to close at 26,120.83. The Russell 2000 (-1.2%) and S&P Mid Cap 400 (-1.1%) underperformed as small- and mid-cap names bore the brunt of the selling.

Tuesday’s session was dominated by a sharp escalation in U.S.-Iran hostilities after U.S. Central Command confirmed strikes on IRGC targets near the Strait of Hormuz, sending WTI crude up $4.45 (+5.2%) to settle at $90.28/bbl. That geopolitical shock, layered atop a global rise in sovereign bond yields, pressured growth and cyclical stocks while driving a rotation into energy and defensive sectors. Technology and consumer discretionary shares led the decline, while energy, utilities, health care, and consumer staples posted gains.

Heading into Wednesday’s open, oil has eased modestly (WTI -0.8% to $89.50/bbl) but elevated Treasury yields remain a headwind, with the 10-year note yield hovering near 4.78%. Pre-market attention is centered on a batch of strong technology earnings — GitLab (+21.65%) and Dell Technologies (+8.34%) both beat and guided above consensus — while Palo Alto Networks slipped despite beating estimates. Markets await the August ADP employment report, July Factory Orders, weekly crude inventories, and the September Fed Beige Book later in the session.

Market Snapshot

Index Levels (Tuesday close, 09/01):

• Dow Jones Industrial Average: 52,766.88 (-419.02, -0.8%)
• S&P 500: 7,631.47 (-54.67, -0.7%)
• Nasdaq Composite: 26,120.83 (-271.11, -1.0%)
• Russell 2000: -1.2% (session); +17.7% YTD
• S&P Mid Cap 400: -1.1% (session); +12.6% YTD

Pre-Market Futures (08:02 ET):

• S&P futures vs. fair value: -4.00
• Nasdaq futures vs. fair value: -62.00

YTD Performance:

• Nasdaq Composite: +12.3% YTD
• S&P 500: +11.5% YTD

Market Breadth (WaveFinder, 09/02):

• Primary Sentiment: Bullish (Bulls 1,000 / Bears 864)
• 40 SMA Sentiment: Bearish
• 4% Sentiment: Neutral
• Stocks Above 20-day SMA: 5%
• Stocks Above 40-day SMA: 38.19%

Sector Performance

Ranked by Tuesday’s session performance (09/01):

1. Energy: +1.5% — Beneficiary of crude oil’s surge above $90/bbl
2. Utilities: +0.7% — Defensive rotation; Edison (+8.91%) and PG&E (+5.92%) standouts on California wildfire liability news
3. Health Care: +0.6% — Defensive positioning
4. Consumer Staples: +0.2% — Defensive positioning
5. Information Technology: -1.0% — Semiconductors and software both pressured; PHLX Semiconductor Index -2.1%, iShares Expanded Tech-Software ETF -3.5%
6. Financials: -0.9% — Pressured alongside cyclicals
7. Industrials: -1.4% — Oil-sensitive names weighed; Axon worst S&P performer (-8.52%)
8. Materials: -1.4% — Cyclical weakness
9. Consumer Discretionary: -1.9% — Session laggard; Amazon (-1.87%) and Tesla (-3.22%) notable decliners

Communication Services and Real Estate sector performance not specified in available data.

Volatility Watch (WaveFinder ATR, 09/02): Energy shows the highest volatility reading (ATR 3.67%, flat, P95), followed by Communication Services (ATR 2.28%, falling, P68) and Health Care (ATR 1.99%, falling, P5). Utilities show the most compressed/falling volatility profile (ATR -2.48%, falling, P5).

Key Earnings & Movers

• GitLab (GTLB) $54.85, +9.76 (+21.65%) — Beat quarterly earnings and revenue expectations; issued upbeat September-quarter guidance.
• Dell Technologies (DELL) $460.09, +35.41 (+8.34%) — Beat EPS/revenue estimates on record Infrastructure Solutions Group revenue; guided Q3 and full-year EPS/revenue above consensus. (Stock had fallen 6.84% Tuesday to $424.82 ahead of the report.)
• Palo Alto Networks (PANW) $352.68, -9.41 (-2.6%) — Beat EPS by $0.04 and topped revenue estimates; guided Q1 and FY27 EPS/revenue above consensus, though shares are pulling back in pre-market trade.
• Ollie’s Bargain Outlet (OLLI) — Rallying pre-market on a Q2 earnings beat; adjusted EPS rose 43.4% yr/yr to $1.42, aided by a $28.3 mln IEEPA tariff refund. Raised FY27 EPS guidance to $4.57-$4.65 but cut revenue guidance to $2.928-$2.941 bln and comp-sales outlook to 0-0.5% growth.
• Novartis (NVS) $160.43 — Rallying after remibrutinib met primary endpoints in both Phase III REMODEL trials for relapsing multiple sclerosis.
• Apple (AAPL) $325.13, +8.28 (+2.61%) — Tuesday’s notable tech gainer as John Ternus officially assumed the CEO role.

Stock Spotlight

Dell Technologies (DELL) is the standout mover following its fiscal Q2 report, with shares up $35.41 (+8.34%) to $460.09 in pre-market trading — a sharp reversal from Tuesday’s 6.84% pre-earnings selloff. The company beat both earnings and revenue expectations, driven by record revenue in its Infrastructure Solutions Group, and guided both fiscal third-quarter and full-year earnings and revenue above Street consensus. The result validates the elevated expectations that had built following Dell’s strong Q1 performance and outlook, and it stands in contrast to broader technology-sector softness tied to rising Treasury yields.

The report arrives amid a backdrop of intensifying AI-infrastructure demand narratives across the technology supply chain, and Dell’s beat — paired with GitLab’s 21.65% pre-market surge on its own earnings beat — is providing a pocket of strength within an otherwise cautious pre-market tape pressured by elevated global bond yields and lingering geopolitical risk from the U.S.-Iran situation.

Bond Market & Treasuries

U.S. Treasuries are on track for a modestly higher start Wednesday, bucking overnight weakness seen in most other sovereign debt markets. As of 8:04 AM ET:

• 2-year: 4.38% (-1 bp overnight)
• 3-year: 4.45% (-1 bp)
• 5-year: 4.54% (-2 bps)
• 10-year: 4.78% (-2 bps); also quoted at 4.778% (+3/32 in price)
• 30-year: 5.25% (-2 bps)

Tuesday’s close saw yields at fresh highs for the year: 2-yr +4 bps to 4.39%, 10-yr +4 bps to 4.80%, 30-yr +2 bps to 5.27%. Overnight, JGB yields and 10-year yields in Germany, France, and the U.K. all pushed to fresh 2026 highs. The G20 finance ministers’ meeting in North Carolina ended without a joint statement after China objected to language on Strait of Hormuz shipping and non-market policies; Treasury Secretary Bessent reiterated concerns about China’s export overcapacity. The U.S. Dollar Index is up 0.1% to 99.77.

Commodities

• WTI Crude Oil: $89.50/bbl, -0.8% (easing from Tuesday’s surge to $90.28, +5.2%); approached but did not sustain a test of the July high near $93.50
• Gold: $4,372.70/ozt, -0.5%
• Copper: $6.61/lb, +0.1%
• Silver: Not available in provided data

Overseas Markets

Asia-Pacific (weak session):

• Japan Nikkei: -2.90% to -3.0% (-1,889.70 to 64,325.64) — pressured by continued selling in JGBs pushing yields to fresh 2026 highs
• Hong Kong Hang Seng: -0.1% (-18.50 to 25,311.21)
• China Shanghai Composite: -1.0%
• South Korea Kospi: -4.0%
• India Sensex: -0.5%
• Australia ASX All Ordinaries: -1.1%

Europe (trading lower):

• STOXX Europe 600: -0.7%
• Germany DAX: -0.6%
• U.K. FTSE 100: -0.5%
• France CAC 40: -0.5%
• Italy FTSE MIB: -0.3%
• Spain IBEX 35: Unchanged

European weakness coincides with regional sovereign yields (Germany, France, U.K.) hitting fresh 2026 highs. ECB’s Nagel acknowledged markets are “nearly certain” of a rate hike later this month.

Economic Data

• MBA Mortgage Applications Index (week of 08/29): +0.8% actual vs. -1.0% prior
• South Korea August CPI: +0.2% m/m (expected 0.3%; prior -0.2%); +3.1% yr/yr (expected 3.2%; prior 2.8%)
• Australia Q2 GDP: +0.4% qtr/qtr (expected 0.3%; prior 0.3%); +2.1% yr/yr (expected 1.8%; prior 2.5%)
• Australia August AIG Construction Index: -6.9 (prior -40.8); AIG Manufacturing Index: -16.6 (prior -19.3)
• New Zealand July Building Consents: -4.3% m/m (prior -3.7%)
• France July Budget Deficit: EUR145.9 bln (prior deficit EUR106.8 bln)
• Italy July PPI: +2.4% m/m (prior 0.0%); +7.8% yr/yr (prior 5.8%)
• Spain August Unemployment Change: +44,400 (expected 15,400; prior 19,500)
• RBNZ: Raised official cash rate 25 bps to 2.75%, as expected

Looking Ahead

Remaining U.S. Economic Calendar (09/02):

• 8:15 AM ET: August ADP Employment Change (Briefing.com consensus 47K; prior 44K)
• 10:00 AM ET: July Factory Orders (Briefing.com consensus 0.6%; prior -0.3%)
• 10:30 AM ET: Weekly EIA Crude Oil Inventories (prior +4.41M)
• 2:00 PM ET: September Fed Beige Book

Key Themes to Monitor:

• Continued U.S.-Iran geopolitical developments and their impact on oil prices, following Tuesday’s U.S. strikes on IRGC targets and threats of Iranian retaliation
• Global sovereign bond yield trajectory, with JGB, gilt, and bund yields at multi-year/2026 highs
• Growing market expectations for an FOMC rate hike this month
• Follow-through reaction to Dell, GitLab, Palo Alto Networks, Ollie’s Bargain Outlet, and Novartis earnings/news
• ECB rate-hike expectations following policymaker Nagel’s comments