Stock Market Update

Equity futures point to a lower open this morning as the market navigates rising global bond yields and another spike in oil prices. The upward pressure on yields has resulted in broad weakness across overseas equity markets. Another increase in the price of oil has contributed to the selling after reports of cargo ships being attacked in the Strait of Hormuz, as crude oil climbs $2.03 (+2.4%) to $87.79 per barrel.

The major averages finished August with solid gains, though action was choppy as geopolitical developments and sharp swings in technology stocks repeatedly influenced market direction. Those same themes remain in focus to begin September, with renewed tensions surrounding the Strait of Hormuz pushing oil prices higher while rising global bond yields provide an additional headwind for equities.

On the data front, the August ISM Manufacturing Index and July JOLTS report are due at 10:00 a.m. ET, along with July construction spending, and should help shape the market's view of economic growth and labor demand.

Today's remaining economic calendar:

• 9:45 AM ET: August S&P Global U.S. Manufacturing PMI - Final; prior 53.2
• 10:00 AM ET: July Construction Spending; Briefing.com consensus 0.2%; prior -0.1%
• 10:00 AM ET: August ISM Manufacturing Index; Briefing.com consensus 55.3%; prior 55.6%
• 10:00 AM ET: July JOLTs - Job Openings; Briefing.com consensus 7.390M; prior 7.359M

In corporate news:

• Anthropic agreed to a $35 billion cloud computing deal with NVIDIA (NVDA 217.81, -2.97, -1.4%) supported Lambda, according to The Wall Street Journal.
• Medtronic (MDT 95.25, +4.60, +5.07%) beat fiscal first-quarter earnings and revenue estimates and raised its fiscal 2027 guidance.
• Novartis (NVS 159.90, +7.84, +5.16%) said remibrutinib met the primary endpoint in two Phase III trials for relapsing multiple sclerosis and showed superiority across all key secondary endpoints.

Reviewing overnight developments:

Asia-Pacific markets began September on a mostly lower note as investors considered the outlook for Japanese monetary policy and mixed regional manufacturing data. Japan's Nikkei: -0.2%, Hong Kong's Hang Seng: -0.9%, China's Shanghai Composite: -0.2%, India's Sensex: UNCH, South Korea's Kospi: +0.2%, Australia's ASX All Ordinaries: -0.1%.

In news:

• NHK reported that Treasury Secretary Bessent told senior Japanese officials that additional rate hikes are needed, though expectations for a September increase were already elevated.
• Japan's 10-year JGB auction drew good demand, while the 10-year yield reached a fresh 2026 high just below 3.00%.
• Japan will spend JPY616 billion to extend fuel subsidies.

In economic data:

• China's August RatingDog Manufacturing PMI 51.5 (expected 51.0; last 50.9)
• Japan's Q2 Capital Spending 1.6% yr/yr (expected -0.2%; last 0.0%) and August Manufacturing PMI 54.9 (expected 55.1; last 54.5). August Household Confidence 35.5 (expected 35.3; last 34.9)
• South Korea's August trade surplus $34.75 bln (expected surplus of $30.70 bln; last surplus of $30.39 bln). August Imports 22.5% yr/yr (expected 24.7%; last 26.5%) and Exports 68.7% (expected 62.6%; last 63.0%). August Manufacturing PMI 52.3 (last 53.1)
• Australia's August Manufacturing PMI 52.0, as expected (last 52.0). Q2 Current Account deficit AUD27.2 bln (expected deficit of AUD29.7 bln; last deficit of AUD25.4 bln). July Building Approvals -3.6% m/m (expected -4.7%; last 6.9%) and Private House Approvals -4.2% m/m (last 0.4%)
• India's August Manufacturing PMI 52.8 (expected 52.9; last 53.5)

Major European markets trade lower as investors assess firmer eurozone inflation, uneven manufacturing readings, and central-bank commentary. STOXX Europe 600: -0.7%, Germany's DAX: -1.1%, U.K.'s FTSE 100: -0.8%, France's CAC 40: -0.3%, Italy's FTSE MIB: -1.1%, Spain's IBEX 35: -1.0%.

In news:

• ECB policymaker Rehn said the conflict in Iran could keep inflation elevated and that the central bank cannot show complacency.
• British Prime Minister Burnham is expected to announce measures aimed at reducing the cost of living later today.

In economic data:

• Eurozone's August Manufacturing PMI 52.7 (expected 52.8; last 51.9). Flash August CPI 2.9% m/m (last 0.2%); 3.3% yr/yr, as expected (last 2.9%). Flash August Core CPI 0.2% m/m (last 0.0%); 2.4% yr/yr (expected 2.5%; last 2.5%). July Unemployment Rate 6.4% (expected 6.3%; last 6.4%)
• Germany's July Retail Sales -3.4% m/m (expected 0.4%; last 0.0%); -2.5% yr/yr (last 5.3%). August Manufacturing PMI 54.3 (expected 54.1; last 52.2)
• U.K.'s August Nationwide HPI 0.2% m/m (expected 0.1%; last -0.1%); 1.6% yr/yr (expected 2.1%; last 1.4%). August Manufacturing PMI 51.7 (expected 51.5; last 51.9). July Net Lending to Individuals GBP6.30 bln (expected GBP7.20 bln; last GBP9.50 bln) and July Mortgage Approvals 56,050 (expected 59,000; last 58,220)
• France's August Manufacturing PMI 51.1 (expected 51.5; last 49.8)
• Italy's August Manufacturing PMI 49.6 (expected 51.4; last 51.3). Q2 GDP 0.2% qtr/qtr, as expected (last 0.2%); 1.0% yr/yr, as expected (last 0.8%). July Unemployment Rate 5.8% (expected 5.6%; last 5.8%). Flash August CPI 0.5% m/m, as expected (last 0.3%); 3.3% yr/yr (last 2.9%)
• Spain's August Manufacturing PMI 49.5 (expected 50.3; last 50.2) Swiss July Retail Sales 2.3% yr/yr (expected 1.6%; last 1.9%). August Manufacturing PMI 57.1 (expected 54.1; last 53.2)