Market Summary - September 1, 2026
The first trading session of September 2026 has not been favorable for the US markets, with most key indices showing declines. The S&P 500 is down approximately 0.7%, the Dow Jones has decreased by 0.8%, and the Nasdaq, heavily weighted with technology stocks, has fallen nearly 1%. Notable sell-offs are observed in technology and semiconductor sectors, although the declines are not severe. Amazon and Microsoft have seen losses of 2% and 1.2%, respectively, while Micron faces pressure due to reports of a potential worker strike in Taiwan. In contrast, Apple’s shares have risen by over 2.5%.
European Markets
European indices also closed in the red, with the British FTSE 100 and French CAC 40 both declining around 0.3%. The German DAX and Spanish IBEX 35 performed worse, falling by 1.1% and 0.8%, respectively.
Macroeconomic Indicators
In the macroeconomic landscape, US factory activity continued to expand in August, albeit at a slower pace than July. The ISM index dropped from 55.6 to 54.6, slightly below analysts' expectations of 55.3. Despite this slowdown, a reading above 50 indicates ongoing expansion in the industrial sector. Additionally, new orders have increased for the eighth consecutive month, suggesting sustained demand. However, the number of open job positions rose to 7.27 million in July, lower than the anticipated 7.36 million, indicating a cooling labor market.
Geopolitical Developments
The US-Iran conflict has escalated, with the US conducting strikes on targets associated with the Islamic Revolutionary Guard Corps (IRGC) in response to threats against commercial shipping in the Strait of Hormuz. Following these actions, Iran launched missiles at a US base in Jordan, which were intercepted. Former President Donald Trump stated that the US strikes were retaliatory and warned of larger responses if Iran escalates further. Iran has indicated a willingness to return to a ceasefire agreement if the US meets its obligations.
Commodities Market
In the commodities market, Brent crude oil prices have surged above $90 per barrel due to the heightened tensions in the region. Precious metals are experiencing downward pressure, with gold prices dropping nearly 2.5% to below $4,350 per ounce, and silver declining by nearly 3% to below $65 per ounce.
Currency Movements
The US Dollar has strengthened against most major currencies, driven by rising geopolitical uncertainty and increasing oil prices, which may limit the Federal Reserve's ability to cut interest rates and support US bond yields.
Cryptocurrency Market
The cryptocurrency market is also reflecting deteriorating sentiment, with major cryptocurrencies like Bitcoin and Ethereum losing around 1.9%. Bitcoin is trading around $77,000, while Ethereum is near $2,430.