Stock Market Update

Equity futures are pointing to a lower open amid an unsettled U.S.-Iran backdrop. President Trump rejected Iran's ceasefire proposal, while U.S. officials indicated that talks are continuing and the two sides remain far apart.

Oil prices are higher as a result, with crude oil currently up $3.22 (+3.5%) to $95.63 per barrel. In turn, Treasury yields are climbing as well, with the 10-year note yield up six basis points to 5.22%.

Last week’s action featured a big backup in Treasury yields, though the major averages were largely able to shake off the yield-driven volatility. Strength across mega-cap tech stocks helped offset broader weakness, with the Nasdaq Composite climbing over 2% as a result.

There are no U.S. economic releases today, leaving geopolitical developments and company-specific catalysts in focus ahead of the open.

In corporate news:

• OpenAI agents accessed government websites, according to The Wall Street Journal.
• Boeing (BA 193.00, -5.07, -2.6%) discovered a 737 max software issue, according to The Wall Street Journal.
• NVIDIA (NVDA 227.47, +2.40, +1.1%) authorized an additional $150 billion to its share buyback program. The company also announced a software program aimed at keeping AI agents from misbehaving.

Reviewing overnight developments:

According to Nikkei, Asian markets finished mostly lower as technology shares weakened following limited progress at the Trump-Xi summit, while Hong Kong bucked the broader regional pressure.

In news:

• The Trump-Xi summit produced tariff reductions and extended the trade truce through January, but broader progress was limited.
• Technology shares led losses in Japan and mainland China ahead of Micron's earnings later this week.

In economic data:

• Chian's August Industrial Profit 15.7% year-to-date (prior 17.6%)
• Japan's Corporate Services Price Index 3.7% (expected 3.6%; prior 3.6%)
• India's August Industrial Production 8.0% (expected 6.5%; prior 6.7%)

Equity Markets:

• Japan's Nikkei: -0.7%
• Hong Kong's Hang Seng: +0.5%
• China's Shanghai Composite: -1.7%
• India's Sensex: -1.5%
• South Korea's Kospi: -2.7%
• Australia's All Ordinaries: +0.1%

European markets trade modestly higher despite renewed Middle East tensions and broader pressure on technology shares, with higher oil prices supporting energy names.

In news:

• President Trump rejected Iran's latest truce proposal, although indirect talks are expected to resume this week.
• TotalEnergies outlined plans for annual dividend growth of more than 5% through 2030 and an expanded share-buyback program.
• U.K. homebuilders and related names advanced on expectations for a revival of the Help to Buy scheme.

In economic data:

• There was no economic data of note

Equity Markets:

• STOXX Europe 600 : +0.1%
• Germany's DAX : flat
• U.K.'s FTSE 100 : +0.2%
• France's CAC 40 : +0.2%
• Italy's FTSE MIB : +0.1%
• Spain's IBEX 35 : -0.3%