Weekly Market Insights - NYSE MAC Desk

Published on 9/4/26

Market Overview:

The week saw US equities remain largely uninspired, with the S&P 500 finishing up 0.5% while the equal-weight index fell 0.5%. Key events included the PCE data, Nvidia's strong earnings, and a hawkish speech from Fed Chair Warsh. The market was characterized by a lack of breadth, with only three sectors gaining significantly.

Market Movements:

As September began, traditionally a weak month for stocks, geopolitical tensions escalated with US-Iran hostilities affecting oil prices. The S&P 500 experienced fluctuations, testing the 7600-7800 range. The Energy sector led gains due to rising crude oil prices, while Consumer Discretionary and Industrials lagged.

Economic Data:

The monthly jobs report showed a strong addition of 162K jobs, significantly above expectations, with upward revisions to previous months. The unemployment rate remained steady at 4.1%. JOLTS data indicated a slight decline in job openings, while the ISM Manufacturing PMI showed moderated growth.

Yields and FX:

The treasury curve steepened, with yields rising globally. The strong jobs report influenced market expectations for a Fed rate hike, which increased to 60% probability. The dollar weakened against the yen but gained against the Swiss franc.

Commodities and Crypto:

Brent crude rose approximately 10% for the week amid Middle East tensions. Precious metals saw a decline, while Bitcoin and Ethereum experienced slight gains before pulling back after the jobs report.

Global Equities:

Global markets were mostly lower, with emerging markets outperforming. Japan's Nikkei fell 2%, while China's Hang Seng showed modest gains. European markets also ended lower ahead of the ECB rate decision.

Looking Ahead:

Next week, markets will be closed for Labor Day. Key economic data releases include CPI and PPI, which will be crucial for the Fed's upcoming rate decision. Earnings reports from major companies are also anticipated.