September 3rd Market Overview

Happy Wednesday

Tech lifted the market after Google avoided the worst-case antitrust outcome, with the judge allowing Chrome to stay intact while barring exclusive search deals.

Worth noting that job openings dropped to 7.18 million…the lowest since 2021. Investors seem focused on the regulatory relief for megacap names. Energy's under pressure ahead of Sunday's OPEC+ meeting as crude official slides below $64 a barrel.

Let's dig in...

Today's Big Picture

Google Wins Big in Court 
A federal judge ruled that Alphabet $GOOGL ( ▲ 1.16% ) can keep its Chrome browser and continue paying Apple $AAPL ( ▼ 0.04% ) to be the default search engine on iPhones. This was much better than investors feared - Google doesn't have to break up its business, and Apple keeps receiving over $20 billion per year from Google.

Job Market Weakening
Available job openings dropped to 7.18 million in July, the fewest since 2021. A Federal Reserve survey also found that consumers are struggling to keep up with higher prices. This weak data makes it more likely the Fed will cut interest rates in September.

Oil Companies Getting Hit 
OPEC and its allies may increase oil production at their meeting this Sunday, which would push oil prices even lower. Crude oil fell below $64 per barrel, and ConocoPhillips $COP announced it's cutting up to 25% of its workforce as energy companies struggle with falling prices.

Market Overview

U.S. Stock Indexes

Stock Spotlight

Apple $AAPL ( ▼ 0.04% ) went up because it gets to keep receiving billions of dollars per year from Google for being the default search engine on iPhones. Bank of America raised their price target since this revenue stream is now safer.

Macy's $M ( ▲ 0.52% ) beat expectations with its best sales growth in three years and raised its outlook for the rest of the year. However, the CEO warned that shoppers might become pickier about spending due to tariffs making products more expensive.

Campbell Soup $CPB ( ▲ 4.2% ) made more profit than Wall Street expected, but the company said tariffs on steel and aluminum will hurt next year's earnings. They plan to raise prices on some products to make up for higher costs.

Big Name Updates

NVIDIA $NVDA ( ▼ 2.7% ) said reports about computer chip shortages are wrong and that they can fulfill all customer orders without delays. This helped calm investor worries about supply problems.

Dollar Tree $DLTR ( ▲ 0.87% ) warned that tariffs are making it harder to keep prices low, showing how trade policies are especially hurting discount retailers.

Alphabet $GOOGL ( ▲ 1.16% ) had the biggest gain today after winning its court case against the government. The judge said Google doesn't have to break up its business, which removes a huge worry for investors. Wall Street analysts still see more upside ahead.

Note: Wall Street firm Wolfe Research believes stocks will keep going up after September if companies continue spending big money on artificial intelligence technology. But they warn this could become a risk if AI spending slows down in 2026.

Other Notable Company News

Zscaler $ZS ( ▲ 2.22% ) , a cybersecurity company, beat profit expectations and said demand for their services remains strong as businesses worry about online threats.

Extreme Networks $EXTR ( ▼ 3.34% ) will continue providing Wi-Fi technology for NFL stadiums through 2028, keeping a valuable contract with the league.

Polestar $PSNY ( ▼ 2.89% ) , the electric vehicle maker, lost more money than expected due to problems with their Polestar 3 model, showing the continued struggles in the EV industry.

Spotify $SPOT ( ▲ 0.48% ) got a buy rating from investment firm Guggenheim, which thinks the music streaming service will benefit from changes in app store policies.

Chipotle $CMG ( ▼ 0.85% ) was upgraded to buy by analysts who think the recent stock decline creates a buying opportunity despite the company's slowing sales growth.

Sector Watch

Bond Market

Bond yields dropped after weak job data. The 10-year fell and the 30-year pulled back from that round 5%.

• Treasury Secretary Bessent interviews Fed chair candidates Friday

• Bank stocks generally declined as lower rates hurt their margins

Policy Watch

Fed Meeting in Two Weeks
A Fed official admitted the job market has problems, making a September rate cut more likely. The Treasury Secretary also starts interviewing people to replace Jerome Powell on Friday.

Oil Countries Meet Sunday 
OPEC might increase oil production this weekend. More supply means lower oil prices and energy stocks will drop.

Tariff Court Fight 
A judge said many of Trump's tariffs are illegal. Companies like Campbell's $CPB ( ▲ 4.2% ) and Dollar Tree $DLTR ( ▲ 0.87% ) are already losing money from higher costs while waiting for the Supreme Court to decide.

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What to Watch

Jobs Report Friday
Expect around 175,000 new jobs. If it's much lower, Fed cuts rates in September and stocks rally. If it's above 225,000, rate cut odds drop and bond yields spike.

OPEC Meeting Sunday 
They're deciding whether to pump more oil. Current word is they might increase production, which would send crude toward $60 and hammer energy stocks like Exxon and Chevron.

Fed Chair Candidates 
Bessent interviews start Friday. Any names that leak will move markets. Look for dovish picks who favor aggressive rate cuts versus hawks who want to go slow.

Tech Spending Reports Salesforce
reports Thursday, Broadcom Friday. Listen for any mention of slowing AI budgets or delayed data center projects. One bad comment could tank the whole sector.

Tariff Earnings Next Week 
Watch Target and Walmart earnings for margin pressure. If big retailers can't pass through costs, it signals consumer pushback and trouble for smaller companies.

Thanks for reading 🙂

- John