Market Review: September 03, 2026

Closing Recap

Thursday, September 03, 2026

US equity futures were pretty much flat coming out of overnight with many traders already away ahead of the holiday weekend. Earnings continued to wind down with last night’s results pushing SNOW, CHPT and WOOF higher as the big winners, while NTAP, PHR, and AVGO all retreated. Pre-market comments from the Fed’s Waller were bullish for Fed watchers and the market carried early gains into the open. By mid-morning, equities were holding in positive territory with breadth favoring advancers by 15:8 as small caps underperformed with IWM (+0.25%) versus SPY (+0.60%) and QQQ (+0.75%). Both SPY and QQQ breadth favored advancers by 11:8. On a sector basis, Consumer Discretionary (+1.29%), Financials (+0.98%) and Technology (+0.75%) were early outperformers among S&P sector ETFs, while Materials (-0.21%), Health Care (-0.28%) and Consumer Staples (-0.30%) led the underperformers with 8 sectors gaining versus 3 declining.

In sentiment today, some mixed signals: the weekly bull-bear spread jumped to 2.1% from -11.5% last week as bulls rose from 32.9% to $39.7% while bears slid from 44.4% to $37.6%. That said, today’s Fear & Greed Index remained in the Fear range at 35/100 versus 55 (Neutral) last week and 50 (Neutral) last month.

Trying to finish a quiet positive day, stocks entered the last hour with solid gains. Next week, post-holiday, begins the next round of conference season. With many companies having just reported earnings, it tends to be more an opportunity for investors to meet with management than a period of big announcements, but surprises do emerge so better to be in the know. We also progress into the historically concerning September/October market window complete with a Fed meeting as investors’ next focal point. Something for everyone.

Stat of the day: @KobeissiLetter noted on X, “Since 1928, the S&P 500 has fallen ~55% of the time in September, making it the only month of the year when negative returns have occurred more often than positive returns. Over this period, the average return of the index has been -1.1%, with an average drawdown of -4.7%. Furthermore, the best September recorded a +14.4% gain, while the worst saw a -29.9% decline. The weakness has historically been concentrated later in the month, with the second half of September averaging a -0.9% return, making it the weakest 2-week period of the year.”

• ISM non-manufacturing sector shows PMI 55.4 in Aug (consensus 54.2) vs 54.1 in July; ISM non-manufacturing business activity index 61.7 in August vs 59.1 in July; ISM non-manufacturing new orders index 60.9 (3 ½ year highs) in August vs 57.2 in July; prices paid index 72.6 in Aug vs 70.3 in July; employment index 47.8 in August vs 47.4 in July.
• Weekly Jobless Claims climbed to 206,000 from 204,000 last week and vs. consensus 205,000; the 4-week moving average climbed to 207,250 from 205,750 prior week (previous 205,500); continued claims climbed to 1.779M from 1.771M prior week and vs. consensus 1.790M.
• The U.S. trade deficit widened sharply in July as strong domestic demand boosted imports, positioning trade to exert another drag on economic growth in the third quarter. The trade shortfall increased 24.4% to (-$88.6 billion) vs. economists forecast the deficit at (-$90.0 billion); July exports -2.1% vs June -0.8%, imports +2.8% vs June -1.8%. U.S. July exports $310.72B vs June $317.34B, imports $399.30B vs June $388.52B.

• WTI crude futures gained overnight then eased intraday. No major headlines came out of Iran, Israel or the US on the ongoing conflict or resolution over the Strait of Hormuz. Iran’s Minister of Oil did state a significant portion of the damage to energy facilities from the two recent wars had been repaired, but that isn’t particularly market moving. October WTI crude settled +$0.29/bbl, or just +0.32%, at $91.30. Average U.S. diesel prices hit $5.820 a gallon on Thursday, a new record, according to GasBuddy data, beating the previous high of $5.819 a gallon recorded on June 17, 2026.

• COST reported August comp store sales (ex-gas/FX) of +5.4%, behind consensus at +6.1% and decelerating from +6.6% in July. US comps (ex-gas) came in at +5.6%, behind consensus at +6.0% and vs. +6.9% in July.
• DLTH surges after reporting Q2 adj EPS of $0.50 on sales of $121.4M (down -8% y/y), with full-year revenue guidance of $540M–$560M; results include $16.3M in tariff refunds boosting adjusted EBITDA to $27M.
• FIVE posted their 5th straight qtr of double-digit comps, with a 14.1% comp vs. 13.0%E as the growth was almost entirely driven by transactions and occurred across cohorts, geographies and categories; sees FY revs $5.63-5.71B vs est $5.544B and adj EPS $9.83-10.31 vs est $9.25.
• GCO posted a smaller-than-expected Q2 adj EPS loss of (-$0.83) vs. est. (-$1.37) while Q2 revs of $520M was just better than consensus; also raises FY27 adj EPS outlook to high end of $2.00-$2.40 range (est. $2.25), expects FY27 comparable sales to be flat, versus prior view of up 1%-2% and sales down about 2%, vs. prior flat to down 1% view.
• LE reports Q2 revenue of $302.0M and adjusted EPS of $0.09, guiding full-year revenue to $1.300B–$1.350B and adjusted EPS of $0.44–$0.72 as core U.S. e-commerce and Outfitters operations return to normal levels
• PVH mixed results and weaker guide; Q1 adj EPS $3.70 tops est. $3.08 while revs fell -3% Y/y to $2.097B in-line with consensus; Q1 GAAP operating margin turned to a loss of 9.1%, including a $439M noncash goodwill impairment charge; sees Q3 adj EPS $2.50-$2.65 vs. est. $2.99  and sees Q3 revenue down low-single digits Y/y.
• TLYS shares jumped on results as Q2 sales rose 8.1% y/y to $163.5M vs. est. $157M and comp net sales increased 12.1%, marking fourth straight quarter of y/y growth; also issues better Q3 guidance as sees net sales of $150M-$155M (est. $140M) and comparable sales growth of 10%-14%.
• VSXY posted mixed Q2 results as EPS $0.95 topped the $0.77 estimate and sales of $1.61B rose 10% y/y but just missed consensus and same store sales rose 9% (in-line with ests); forecast sales of $1.57B-$1.6B in Q3 vs. est. $1.57B and raised its year sales view to $7.1B-$7.18B from prior $7.03B-$7.13B

• Poultry/Protein/Beef sector: TSN shares fell after cutting its FY26 revenue view to up 1.5%-2% from up 2.5%-3.5%, primarily driven by significant margin compression amid volatile cattle prices and one of the most severe cattle shortages in U.S. history, as well as the expected impact of lower cattle prices on the value of Live cattle inventories; also cut its FY26 adjusted operating income view to $1.85B-$2.05B from prior $2.1B-$2.3B.

• Casinos & Gaming: Bank America does online betting details (DKNG, FLUT, SRAD): Bofa said online betting adoption is skyrocketing as data shows new users in June & July more than tripled January levels. Youth movement: Gen Z & Millennials accounted for 88% of all online betting activity in July.

• Metals & Mining sector: gold and silver miners (AEM, NEM, AG, FSM, HL, CDE, WPM, etc.) saw sizeable gains again today in another bounce as gold/silver prices jumped following more dovish commentary from Fed’s Waller at a Reuters event today saying he is willing to sit and wait and be patient regarding rates.
• Materials sector: in lithium space, ALB said it appointed Ragnar Udd, currently Chief Commercial Officer at BHP, as its new President and CEO, effective February 1, succeeding Chairman and CEO Kent Masters, who will transition to the role of Executive Chairman; Gerald Steiner will continue to serve as Lead Independent Director.
• Defense sector: in drones, the Trump administration imposes tariffs of up to 100% on foreign-made drones as the FCC weighs restrictions on thermal imaging and aerosol-spraying technology, lifting AVAV, DPRO, KTOS and others
• Aerospace sector: Airbus (EADSY) discovered a production quality problem with an A330 jetliner, forcing it to slow deliveries over the summer, it said. Deliveries have resumed after the "isolated quality issue" was discovered on the horizontal tail plane of an A330 jet before delivery, Airbus said, confirming a Bloomberg report.

• In Insurance: PFG shares edged higher after reports that Samsung Fire & Marine Insurance and Samsung Life Insurance are seeking to acquire Canopius and a major stake in Principal Financial Group, respectively, in deals collectively valued at $6.6 billion.
• Private Equity sector: BX shares were active after investors sought to pull 10% of shares from Blackstone’s flagship private credit fund in the third quarter, according to a regulatory filing. In Q2 fulfilled about half of $4.5B requested for repurchase leaving backlog of $2.3B in unfulfilled requests.

• HCM shares rose after signed a licensing deal with GSK for an experimental solid tumor drug; GSK will pay a unit of HUTCHMED (China) $110 million upfront for rights to an experimental drug for solid tumors.
• MRNA was downgraded to Sell at Redburn while raise tgt to $81 from $40 saying as views the Phase 3 INTerpath-001 trial of intismeran autogene plus Keytruda in patients with completely resected stage IIB-IV melanoma as a "great result" – but notes the subsequent share price reaction implies a near ubiquitous usage across tumor types for which Redburn has seen little or no data which it Struggles to reconcile.
• RARE shares tumbled after its neurodevelopmental disorder treatment, apazunersen, failed to meet both its main goal of improving cognitive skills and its secondary goals of overall patient response in participants with Angelman syndrome, a rare nervous system condition. Ultragenyx said there were no differences between patients receiving the treatment and those on placebo.
• SMMT said its partner Akeso Inc. announced positive overall survival (OS) results from the randomized, double-blind Phase III HARMONi-2 study evaluating ivonescimab monotherapy against pembrolizumab monotherapy in patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) whose tumors have positive PD-L1 expression.
• Healthcare IT sector: PHR reported 2Q revenue/EBITDA were 0.3%/7.2% ahead of consensus on strong cost control. Despite the EBITDA beat, management held FY guidance flat (in line with Street at midpoints) to accelerate 2H investment in the burgeoning ProviderConnect and AccessOne opportunities.
• Medtech sector: BSX issued letter to affected customers recommending unused infinion cx leads be removed from where they are used/sold; Boston Scientific reported 1,081 serious injuries and no deaths Associated with issue related to infinion cx leads.

• SAIA reported LTL shipment and tonnage data for the first two months of Q3. In July 2026, LTL shipments per workday increased 0.8%, LTL tonnage per workday increased 7.8% and LTL weight per shipment increased 7.0%, each compared to July 2025. In August 2026, LTL shipments per workday increased 1.1%, LTL tonnage per workday increased 8.7% and LTL weight per shipment increased 7.5%, each compared to August 2025.

• Software sector: SNOW shares a standout to the upside, surging for a second quarter in a row following better results as EPS of $0.62/$1.55B revs (vs. consensus $0.45/$1.48B), up 35% Y/y versus 33% last quarter, product revenue of $1.49B up 37% Y/y (accelerated by ~300bps Q/Q) with cRPO of $4.91B (consensus 4.75B), growth of ~42% versus 38% last quarter; and better guidance as raised for the year well in-excess of the 2Q beat. The results boosting the software sector broadly again today after a strong earnings season (TEAM, NOW, DDOG, MNDY, HUBS higher). Gaming software Unity (U) shares rose tied to the OpenAI blog FWIW: "Playco is using GPT‑6 Astra in building Playbot, an Ai-powered IDE for professional game developers. It connects directly to engines such as Unity and Godot so Ai models can edit scenes, play and test games, validate changes., and work in parallel inside the Tools developers already use.”
• AI sector: NVDA announced that it will acquire open-source AI platform Hugging Face for $12.93 billion. A massive validation of open-source AI, by a chip design giant known for its work with closed-model companies like Anthropic and OpenAI. It also comes just a month after Hugging Face was hacked by OpenAI models gone rogue. AI cloud firm Nscale on Thursday signed a multi-year deal to provide compute resources for the development of humanoid robotics company Figure’s AI models and robots. Nscale said it will initially commit $3.5 billion in compute resources for Figure. Here are some key details: Initial graphics processing units (GPUs) are targeted for deployment starting in the second half of 2027 in Barstow, Texas, Nscale said. The AI cloud firm, which competes with CRWV and NBIS, plans to scale the computing investment to more than $6 billion. Thinking Machines Lab In talks to raise billions at roughly $40B Valuation, reported The Information.
• Security Software sector: NTSK reported solid Q2 results with 27% y/y ARR growth ahead of consensus expectations as the ARR/revenue beat came in higher relative to last quarter. Looking ahead, FY/27 revenue guidance moved higher than the Q2 beat reflecting 25.5% growth vs. 24% previously.
• Optical sector: CIEN shares fell despite raising FY26 revenue view to $6.42B plus/minus $50M from $6.3B (vs. consensus $6.33B) and guides Q4 revs above consensus; reported better-than-expected results as earned an adj EPS $2.11 and revenue jumped 37% y/y to $1.67B (vs. est. $1.73 and $1.64B). Optical networking revenue came in at $1.19B, while routing and switching revenue rose 9.8% to $164.4M – optical space weak AAOI, LITE, COHR.
• Computer Hardware sector: a day after DELL earnings/guidance surged and lifted shares broadly higher, comp HPE earnings of $1.11 beat consensus and guidance driven by a Cloud & AI revenue beat & better than expected Cloud & AI EBIT margins. Order growth (+42% this quarter) is meaningfully outpacing (pro forma) revenue growth (mid-teens), building backlog and elevated visibility five quarters out.
• Online/Internet: Guggenheim said for RDDT, August global audience reach increased 20.8% (vs. +17.0% in July) with domestic growth of 7.2% (vs. +11.1% in July). Similarweb unique traffic data saw growth deceleration on a global basis with GUGG’s tracking of Google search traffic showing continued softness in August. Average daily Google traffic of 70.8mm compares to 75.1mm in July and Marks the lowest Google traffic month since November 2024. Global Google traffic decreased 7.2% Y/y in August following 0.5% growth in July.
• Ad technology: Bloomberg reported late yesterday Alphabet’s GOOGL won’t be forced to sell its online exchange tool for publishers and advertisers, after all. Federal Judge Leonie Brinkema in Virginia dismissed the Trump administration’s move to force that sale. Last year, she ruled that Google violated illegally maintained a monopoly in how ads show up on websites (shares of MGNI, TTD, PUBM levered to the news).