Evening Market Recap - Thursday, 3-Sep

US equities were lower in Wednesday trading, extending Tuesday's declines. The defensive tone once again chalked up to continued escalation in kinetic activity in the Middle East (and no diplomatic off-ramps in sight) that pushed oil back to four-month highs. Rates were also a headwind, tabbed in part to oil as well as underwhelming Treasury buyback announcement.

US equities were lower in Tuesday trading as major averages ended near session lows. Defensive tilt chalked up to latest hawkish US/Iran updates following weekend ramp in kinetic activity.

US equities were modestly higher this week, with the S&P 500 and Nasdaq both up less than 1% but higher for a second straight week (and fifth week in the past six). The Iran war narrative was fairly choppy, as kinetic activity resumed over the weekend, though was fairly limited in scope. August headline payrolls were up +162K m/m, well ahead of +55K consensus.

US equities were higher in Thursday trading, ending near best levels. The move to the upside was tabbed in large part to rate stabilization following Fed Governor Waller's remarks offering support for a September rate hold if data showed continued disinflation progress. September hike probabilities now seen as just above 50% vs odds near 68% on Tuesday.

US equities were higher in Wednesday trading, a bit off best levels. It was a very quiet, low volume session as the market bounced following a three-day losing streak that was largely chalked up to higher rates, higher energy prices, hawkish central bank reaction function concerns, elevated geopolitical tensions, dampened positive macro surprise momentum and seasonal headwinds.

US equities finished lower in Tuesday trading, with stocks ending not far off worst levels amid upward pressure on rates/oil and AI trade weakness. July JOLTS job openings missed at 7.27M, while June revised down to lowest since February.

US equities were lower in Monday trading, though ended the day off worst levels. The latest Middle East escalation/higher oil prices were seemingly the excuse for the decline. Rates remain in focus with a lot of moving pieces in the takeaways surrounding Warsh's Jackson Hole speech last Friday.

Major US equity indices were mostly higher for the week. Software was a big outperformer after several well-received reports seemed to ease some SaaS anxieties. There was a lot of anticipation for Nvidia's earnings report, which ultimately offered blowout Q3 results and Q3 guidance.

US equity indices finished higher in Thursday trading, though breadth was negative, all sectors outside tech were lower, and the equal-weight S&P lagged by more than 100 bp. It was a very quiet session with the tech rally (and AI and software upside specifically) the only real market narrative. The move was driven by Nvidia's well-received report and guidance, while software also rallied following multiple solid earnings reports that also helped push back against the AI disruption narrative.

US equities ended slightly lower in Wednesday trading, though S&P 500 breadth was positive, and the equal-weight a bit higher amid a bit of a rotation toward select cyclical pockets. It was a fairly quiet session as stocks did not do much overall amid a higher yield and oil backdrop. Today's economic data was mixed.