After Hours Report

The S&P 500 (-0.7%), Nasdaq Composite (-0.8%), and Dow Jones Industrial Average (-0.6%) closed lower in the first session of September as investors grappled with elevated valuations, seasonal concerns, and the fallout from a U.S. Court of Appeals ruling that most of President Trump's enacted tariffs are illegal.

All current levies will remain in place until October 14 pending a potential Supreme Court appeal, with President Trump seeking an expedited ruling from the Supreme Court, according to CNBC.

Stocks largely retreated, with all eleven S&P 500 sectors spending time in negative territory, though some modest late-session buying interest saw equities improve before the close.

Eight S&P 500 sectors would finish with losses, with advancers outpacing decliners by a greater than 2-to-1 ratio on the NYSE and Nasdaq. 

The real estate (-1.7%), industrials (-1.1%), information technology (-1.0%), consumer discretionary (-1.0%), and financials (-0.7%) closed with the widest losses.

Mega-cap weakness played a pivotal role in today's early retreat, but late "buy the dip" interest saw the market's largest names lead the modest bounce off of session lows.

NVIDIA (NVDA 170.74, -3.44, -1.97%) had a particularly volatile session, trading with losses wider than 3.0% at session lows before closing just below its 50-day moving average (171.06). Semiconductor stocks as a cohort were relatively weak, though much improved from early levels, with the PHLX Semiconductor Index ultimately finishing with a 1.1% loss.

The Vanguard Mega Cap Growth ETF (-1.0%) halved its earlier losses after being down as much as 2.0% today.

The S&P 500 Equal Weighted Index (-0.9%) still slightly underperformed the market-weighted S&P 500 (-0.1%), but only by a slight margin.

Smaller-cap stocks performed slightly better than their larger counterparts, as the S&P Mid Cap 400 (-0.5%) and Russell 2000 (-0.6%) finished with more modest losses. 

As for today's winners, an outperformance in defensive sectors reflected today's risk-off sentiment. 

The health care sector (+0.1%) benefitted from a strong showing in biotech names that boosted the iShares Biotechnology ETF 1.6%, while the consumer staples sector (+0.1%) captured a similar gain despite several names trading sharply lower in response to headlines.

Kraft Heinz (KHC 26.02, -1.95, -6.97%) traded lower after the company announced it will split into two independently traded names, and Constellation Brands (STZ 151.26, -10.68, -6.60%) slipped after the company lowered its FY26 EPS guidance, citing dampened consumer demand and more volatile consumer purchasing behavior.

Elsewhere, the energy sector (+0.2%) closed as the top-performing S&P 500 sector, benefitting from crude oil futures settling today's session $1.59 higher (+2.5%) at $65.60 per barrel.

The CBOE Volatility Index jumped 14.0% to 17.51, underscoring heightened investor anxiety as September's historically weak start lives up to expectations. With little in the way of consequential economic data or earnings releases tomorrow, it appears the market will be left to its own devices to determine if today's retreat will compound or if the late-session resilience will culminate in another record-setting rally.

U.S. Treasuries began the Labor Day-shortened week with losses across the curve, though intraday action saw all tenors rise off their opening lows. The 2-year note yield settled up four basis points to 3.66%, and the 10-year note yield settled up five basis points to 4.28%. 

• Nasdaq Composite: +10.2% YTD
• S&P 500: +9.1% YTD
• DJIA: +6.5% YTD
• Russell 2000: +5.5% YTD
• S&P Mid Cap 400: +3.8% YTD

Reviewing today's data:

• August ISM Manufacturing Index 48.7% (Briefing.com consensus 48.6%); Prior 48.0%
  • The key takeaway from the report is that the new orders index bounced back into expansion territory following six straight months of contraction; however, the overall activity for the manufacturing sector remains in a disappointing mode of contraction.
• July Construction Spending -0.1% (Briefing.com consensus 0.2%); Prior -0.4%
  • The key takeaway from the report is that the softness in July was led by private nonresidential spending, although private residential spending (+0.1%) wasn't exactly strong either.
• August S&P Global U.S. Manufacturing PMI -Final 53.0; Prior 53.3

Overseas:

• Europe: DAX -2.2%, FTSE -0.9%, CAC -0.7%
• Asia: Nikkei +0.3%, Hang Seng -0.5%, Shanghai -0.5%

Commodities:

• Crude Oil +1.59 @ 65.60
• Nat Gas +0.01 @ 3.01
• Gold +76.00 @ 3592.20
• Silver +0.91 @ 41.62
• Copper +0.05 @ 4.64

After-Hours Spotlight:

• Verint Systems (VRNT) beats by $0.07, beats on revs; co previously announced it is being acquired...VRNT +0.1%
• Zscaler (ZS) beats by $0.09, beats on revs; guides Q1 EPS in-line, revs above consensus; guides FY26 EPS in-line, revs above consensus...ZS +3.4%

Fair Value for Wednesday, September 3:

• S&P 500: 6,426
• Nasdaq 100: 23,275
• DJIA: 45,356

For a full rundown of today's market and after hours developments, see Live In Play

• Earnings/Guidance (Full Earnings Calendar):
  • Constellation Brands (STZ) lowers FY26 EPS guidance; cites dampened consumer demand and more volatile consumer purchasing behavior
  • Digital Turbine (APPS) completes debt refinancing and updates annual guidance; sees FY26 (Mar) revs of $530-535 mln, up from prior guidance of $525-535 mln.
  • Humana (HUM) reaffirms FY25 adjusted EPS guidance ahead of various investor/analyst meetings in September
  • NIO (NIO) beats by RMB0.37, misses on revs; guides Q3 revs below consensus
  • Signet Jewelers (SIG) beats by $0.37, beats on revs; guides Q3 revs above consensus; raises FY26 EPS in-line, revs in-line
  • The Cigna Group (CI) expects to reaffirm projected full year 2025 consolidated adjusted income from operations on a per share basis of at least $29.60 per share at investor meetings
• General News
  • U.S. Court of Appeals rules against most of President Trump's tariffs, but the tariffs are permitted to remain for now based on expected appeal to Supreme Court
  • President Trump says India has offered "to cut their tariffs to nothing, but it's getting late. They should have done so years ago."
  • President Trump says, it is 'very important that the Drug Companies justify the success of their various Covid Drugs'
  • Macau Gaming Inspection and Coordination Bureau reported August gross revs increased 12.2% yr/yr to HKD22.16 bln
  • Trump regulators scale back bank oversight, easing exams and disciplinary notices, according to Reuters
  • US still holding back secondary sanctions on China amid broader trade negotiations, according to Bloomberg
  • HHS confirms Americans to gain new access to real-time prescription drug price information
  • President Trump on Scott Jennings Radio Show - said 'very disappointed in President Putin'
  • Alphabet (GOOG) sharply higher after Judge rules that Google can retain Chrome but cannot enter into exclusive search agreements, according to CNBC
  • AbbVie (ABBV) announces that under the Priority Review process, Health Canada has approved ELAHERE, an antibody-drug conjugate, for the treatment of adult patients with folate receptor-alpha (FRa) positive, platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal cancer, who have received one to three prior systemic treatment regimens
  • AbbVie (ABBV): UK MHRA crackdown on illegal ‘Botox’ after victims left seriously ill
  • Air Products (APD) announces that its new air separation facility in Cleveland, Ohio is onstream and supplying customers
  • Amazon (AMZN) Prime Day U.S. sign-ups slip despite record sales, missing internal targets, according to Reuters
  • Apollo (APO) to launch $5 bln sports investment fund. FT
  • Apple (AAPL) mandates automation in supply chain, shifting costs to suppliers, according to DigiTimes
  • ArcelorMittal (MT) provides update on South Africa’s long steel business; IDC due diligence process has not been concluded and remains ongoing
  • Arrowhead (ARWR) announces a global licensing and collaboration agreement with Novartis (NVS) for ARO-SNCA
  • Bed Bath & Beyond, Inc. (BBBY) requests tZERO Board of Directors replace tZERO CEO
  • Biogen (BIIB) and Eisai receive FDA approval for LEQEMBI IQLIKTM (lecanemab-irmb) subcutaneous injection for maintenance dosing for the treatment of early Alzheimer's Disease
  • Bitmine Immersion Technologies (BMNR) provides investor update; BitMine Crypto + Cash holdings of $8.98 billion
  • Boeing (BA) and Macquarie AirFinance announce order for 30 737 MAX Airplanes
  • Bridge Investment Group (BRDG): Apollo (APO) completes acquisition of Bridge Investment Group
  • ChipMOS TECHNOLOGIES (IMOS) authorizes new share repurchase program up to NT$480 million (approximately US$15.7 million, based on the exchange rate of NT$30.59 to US$1.00 as of August 29, 2025)
  • Cybin (CYBN) announces that, effective September 2, 2025, Doug Drysdale will step down as the Company’s Chief Executive Officer
  • Dow (DOW) and Macquarie Asset Management form strategic partnership to expand equity stake in Diamond Infrastructure Solutions
  • F.N.B. Corp (FNB): First National Bank subsidiary plans to add nearly 30 new branches to its network during the next five years
  • Gorilla Technology Group (GRRR) has secured a three-year contract valued in the tens of millions of dollars to deliver a fully deployed, 5G-native Lawful Interception (5G LI) platform
  • IQVIA (IQV) announces a planned leadership transition in its finance organization
  • Kraft Heinz (KHC) announces plan to separate into two scaled, focused companies to accelerate profitable growth and unlock shareholder value
  • Kraft Heinz (KHC): Warren Buffett (27.5% shareholder) disappointed by Kraft Heinz split, says merger "wasn’t a brilliant idea", according to CNBC interview
  • Interactive Brokers (IBKR) reports its Electronic Brokerage monthly performance metrics for August; 3.488 million DARTS, 29% higher than prior year and about even with prior month
  • Li Auto (LI) announced that it delivered 28,529 vehicles in August 2025
  • Lockheed Martin (LMT) awarded prototype agreement by the US Army for Next Generation Command and Control (NGC2)
  • LZ Technology Holdings (LZMH) enters into a non-binding memorandum of understanding with MBH Investments to evaluate a potential joint venture in the United Arab Emirates. Subject to results in the UAE, the parties may assess broader Middle East opportunities
  • Marsh McLennan (MMC) announces the acquisition of Robins Insurance
  • Marvell (MRVL) extends CXL ecosystem leadership with Structera interpoperability across all major memory and CPU platforms
  • Merck's (MRK) Investigational Oral PCSK9 inhibitor enlicitide decanoate met all primary and key secondary endpoints
  • Meta Platforms (META) facing backlash for using celebrity voices without permission. Reuters
  • Meta Platforms (META) could license AI features from Google, OpenAI. Reuters
  • Motorola Solutions (MSI): U.S. Federal Court determines Hytera continues to Use Motorola Solutions’ stolen trade secrets
  • Nestle (NSRGY) names Philipp Navratil as CEO following the departure of Laurent Freixe in the wake of an investigation into an undisclosed romantic relationship with a direct subordinate
  • NIO (NIO) reports August deliveries increased 55% yr/yr
  • Novartis AG (NVS) reports Leqvio shows statistically significant and clinically meaningful early LDL-C goal achievement with less muscle pain
  • Novo Nordisk (NVO) reports Wegovy cuts risk of heart attack, stroke or death by 57% compared to tirzepatide
  • NuScale Power (SMR) subsidiary entered into a Partnership Milestones Agreement with ENTRA1 Energy
  • NVIDIA (NVDA) addresses erroneous chatter; says 'rumor that H20 reduced our supply of either H100/H200 or Blackwell is also categorically false'
  • Oncolytics Biotech (ONCY) provides updated clinical safety data for Pelareorep, including across multiple gastrointestinal tumors
  • Organon (OGN) receives FDA approval for BILDYOS and BILPREVDA
  • Paramount (PARA) teams up with Activision to develop live-action Call of Duty movie, according to TheWhrap
  • PepsiCo (PEP) targeted by activist Elliott Management, according to Bloomberg
  • PG&E's (PCG) electric rates for residential customers decreased by 2.1% on September 1
  • Polaris Industries (PII) unit has been awarded a two-year framework contract by the NATO Support and Procurement Agency for the supply of MRZR D light tactical vehiclesvalued at hundreds of millions USD
  • Qiagen (QGEN) receives clearance from FDA of Higher-Throughput QIAstat-Dx Rise
  • Rezolute (RZLT) announces that the Company has gained alignment with FDA on a significantly streamlined clinical development path for its ongoing Phase 3 study of ersodetug for the treatment of hypoglycemia caused by tumor HI
  • Rigetti Computing (RGTI) has signed a Memorandum of Understanding with the Centre for Development of Advanced Computing, India’s premier R&D organization of the Ministry of Electronics and Information Technology
  • RTX (RTX): UK CMA officially closed investigation into acquisition by Safran (SAFRY) of a part of Collins Aerospace’s (unit of RTX Corporation) actuation and flight control business
  • Spirit Airlines (FLYY) issues open letter to all guests; seeks bankruptcy protection
  • Starbucks (SBUX) notes record-breaking week of sales after launch of fall lineup
  • Starbucks (SBUX) announces arrival of new protein lattes and protein cold foam to the menu on Sept. 29
  • Taiwan Semiconductor Manufacturing (TSM): US revokes TSMC’s China shipping waiver, tightening export controls on Nanjing plant, according to Bloomberg
  • Taiwan Semiconductor Manufacturing (TSM) Board of Directors on May 13, 2025 approved to distribute NT$129,663,077,605 as cash dividend (NT$5.00 per common share) for the first quarter of 2025, and the dividend will be paid on October 9, 2025
  • Taiwan Semiconductor Manufacturing (TSM) confirms the U.S. plans to revoke Nanjing facility shipping authorization by the end of 2025
  • Terex (TEX) has signed a definitive agreement to sell its Terex Tower and Rough Terrain Cranes businesses to Raimondi Cranes SpA, a global manufacturer of cranes based in Milan, Italy
  • Tesla (TSLA) saw sales of its China-made electric vehicles drop 4% year-over-year in August, according to Reuters
  • Textron (TXT) announces the launch of ProParts+, a new addition to the company’s industry-leading ProAdvantage support programs, designed specifically for Cessna Citation 525 series operators
  • TotalEnergies (TTE) awarded new exploration permit in Republic of the Congo
  • Upstream Bio (UPB) announced 'positive' top-line results from the Phase 2 VIBRANT trial evaluating verekitug in participants with chronic rhinosinusitis with nasal polyps
  • Varonis Systems (VRNS) also updates guidance to reflect the incremental expenses associated with the acquisition of SlashNext
  • Vertex Pharma (VRTX) and Enlaza Therapeutics announce strategic collaboration to develop war-lock drug conjugates and T-Cell engagers for improved conditioning and certain autoimmune diseases
  • XPeng (XPEV) reports August deliveries increased 169% yr/yr
  • ZEEKR Intelligent Technology (ZK) reports August deliveries increased 10.6% yr/yr
  • Zymeworks (ZYME) to discontinue clinical development of ZW171, a T cell engager designed to target gynecological, thoracic, and digestive system cancers

• Upgrades:
  • Acuity Brands (AYI) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $380
  • Affiliated Managers (AMG) upgraded to Buy from Neutral at BofA Securities, tgt $331
  • Ametek (AME) upgraded to Hold from Sell at TD Cowen, tgt $180
  • American Axle (AXL) upgraded to Outperform from Sector Perform at RBC Capital, tgt $8
  • Ameresco (AMRC) upgraded to Outperform from Neutral at Robert W. Baird, tgt $35
  • Ally Financial (ALLY) upgraded to Equal Weight from Underweight at Wells Fargo, tgt $45
  • BRP Inc. (DOOO) upgraded to Buy from Hold at Canaccord
  • Chemed (CHE) upgraded to Buy from Hold at Jefferies, tgt $550
  • Corning (GLW) upgraded to Buy from Neutral at UBS, tgt $84
  • Ferrari (RACE) upgraded to Buy from Hold at Deutsche Bank
  • Frontier Group (ULCC) upgraded to Buy from Hold at Deutsche Bank, tgt $8
  • Hexcel (HXL) upgraded to Buy from Neutral at UBS, tgt $80
  • Hubbell (HUBB) upgraded to Overweight from Equal Weight at Wells Fargo, tgt $490
  • ING Groep (ING) upgraded to Overweight from Equal Weight at Morgan Stanley
  • Performance Food Group (PFGC) upgraded to Overweight from Neutral at Piper Sandler, tgt $114
  • Procept BioRobotics (PRCT) upgraded to Outperform from Perform at Oppenheimer, tgt $60
  • SailPoint (SAIL) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $25
  • Sanofi (SNY) upgraded to Buy from Hold at Deutsche Bank
  • Zscaler (ZS) upgraded to Overweight from Equal Weight at Morgan Stanley, tgt $320
• Downgrades:
  • British American Tobacco (BTI) downgraded to Underperform at RBC Capital
  • Eni (E) downgraded to Sector Perform from Outperform at RBC Capital
  • Fortinet (FTNT) downgraded to Underweight from Equal Weight at Morgan Stanley, tgt $67
  • Fortive (FTV) downgraded to Equal Weight from Overweight at Morgan Stanley, tgt $50
  • Fresenius Medical (FMS) downgraded to Sell from Neutral at UBS
  • Newmont (NEM) downgraded to Neutral from Outperform at Macquarie, tgt $72
  • Noble Corp. (NE) downgraded to Hold from Buy at SEB Equities, tgt $30
  • Noble Corp. (NE) downgraded to Neutral from Buy at Clarksons, tgt $31
  • Simon Property (SPG) downgraded to Hold from Buy at Stifel, tgt $179
  • Valaris (VAL) downgraded to Sell from Hold at SEB Equities, tgt $45.50
  • Valaris (VAL) downgraded to Neutral from Buy at Clarksons, tgt $54
• Others:
  • 5E Advanced Metals (FEAM) initiated with a Buy at H.C. Wainwright, tgt $7.50
  • Addus HomeCare (ADUS) initiated with a Buy at UBS, tgt $145
  • Altice USA (ATUS) assumed with a Sell at Goldman, tgt $2
  • AT&T (T) assumed with a Buy at Goldman, tgt $32
  • Avidbank Holdings (AVBH) assumed with an Overweight at Piper Sandler, tgt $31
  • Brookfield Corp. (BN) initiated with a Buy at Goldman, tgt $78
  • Cogent (CCOI) assumed with a Neutral at Goldman, tgt $40
  • Charter (CHTR) assumed with a Sell at Goldman, tgt $223
  • Enanta (ENTA) initiated with a Buy at WestPark Capital, tgt $24
  • FireFly Aerospace (FLY) initiated with a Hold at Deutsche Bank, tgt $45
  • FireFly Aerospace (FLY) initiated with an Overweight at Cantor Fitzgerald, tgt $65
  • FireFly Aerospace (FLY) initiated with an Overweight at JPMorgan, tgt $55
  • FireFly Aerospace (FLY) initiated with an Equal Weight at Morgan Stanley, tgt $52
  • FireFly Aerospace (FLY) initiated with a Neutral at Goldman, tgt $54
  • FireFly Aerospace (FLY) initiated with a Buy at Jefferies, tgt $60
  • Heartflow (HTFL) initiated with an Equal Weight at Morgan Stanley, tgt $35
  • Heartflow (HTFL) initiated with a Buy at Canaccord, tgt $35
  • Heartflow (HTFL) initiated with a Buy at Stifel, tgt $35
  • Heartflow (HTFL) initiated with an Overweight at Piper Sandler, tgt $38
  • Heartflow (HTFL) initiated with an Overweight at JPMorgan, tgt $36
  • Inspire Medical (INSP) initiated with an Outperform at Evercore ISI, tgt $150
  • InflaRx (IFRX) assumed with a Buy at H.C. Wainwright, tgt $6
  • Lumen (LUMN) assumed with a Neutral at Goldman, tgt $4.10
  • Maze Therapeutics (MAZE) initiated with a Buy at BTIG Research, tgt $30
  • Mobilicom (MOB) initiated with a Buy at Litchfield Hills, tgt $10
  • NextNRG (NXXT) initiated with a Buy at H.C. Wainwright, tgt $5
  • Penumbra (PEN) initiated with an Outperform at Evercore ISI, tgt $300
  • Pelthos Therapeutics (PTHS) initiated with an Outperform at Oppenheimer, tgt $50
  • Porch Group (PRCH) initiated with a Buy at Goldman, tgt $21
  • QXO (QXO) initiated with an Overweight at Morgan Stanley, tgt $35
  • Ralliant (RAL) initiated with an Overweight at Morgan Stanley, tgt $55
  • Roivant Sciences (ROIV) initiated with a Buy at Citigroup, tgt $16
  • Tempus AI (TEM) initiated with a Buy at H.C. Wainwright, tgt $90
  • T-Mobile (TMUS) assumed with a Buy at Goldman, tgt $286
  • Verizon (VZ) assumed with a Buy at Goldman, tgt $49
  • Vistagen (VTGN) initiated with a Buy at Lucid Capital, tgt $19
  • WhiteFiber (WYFI) initiated with a Buy at Needham, tgt $34
  • WhiteFiber (WYFI) initiated with a Buy at Clear Street, tgt $26
  • WhiteFiber (WYFI) initiated with an Outperform at Macquarie, tgt $28
  • WhiteFiber (WYFI) initiated with a Buy at B. Riley, tgt $34

• Econ Data (Wednesday):
  • 7:00 ET: Weekly MBA Mortgage Index (prior -0.5%)
  • 10:00 ET: July Factory Orders (Briefing.com consensus -1.4%; prior -4.8%) and July Job Openings (prior 7.437 mln)
  • 14:00 ET: September Beige Book

• Earnings:
  • Monday (Sep 1)
    • Pre-Market: None
    • After-Hours: None
      
    Tuesday (Sep 2)
    • Pre-Market: ASIO NIO SIG
    • After-Hours: ZS
      
  • Wednesday (Sep 3)
    • Pre-Market: CPB DLTR M REVG CXM
      
    • After-Hours: AEO ASAN AI CRDO DSGX GTLB HPE PD CRM
      
  • Thursday (Sep 4)
    • Pre-Market: FLWS BRC CAL CIEN DAVA GIII SAIC SCVL TTC WLY
    • After-Hours:  AGX BRZE AVGO CPRT DOCU GWRE LULU PHR IOT TTAN SWBI PATH ZUMZ
  • Friday (Sep 5)
    • Pre-Market: ABM
    • After-Hours: None