[BRIEFING.COM] The Dow Jones Industrial Average (-0.89%) is in last place on Tuesday afternoon, down about 467 points.

A look inside the DJIA shows that Goldman Sachs (GS 959.44, -29.01, -2.93%), Amazon (AMZN 248.58, -4.96, -1.96%), and Nike (NKE 36.39, -0.66, -1.78%) are underperforming.

Meanwhile, Chevron (CVX 216.50, +4.33, +2.04%) is firmly atop the average.

The DJIA is now -1.51% off Monday's opening highs.

Elsewhere, U.S. Treasuries remain in the red with longer tenors sliding back to their morning lows in recent trade. Intraday action has turned into a sideways drift at this year's lows with 10-yr note futures trading just 20 ticks above their low from late 2023. The market has not received much help from the just completed $13 bln 20-yr bond reopening, which met weak demand. The sale drew a high yield of 5.420%, which tailed the when-issued yield by two basis points. The bid-to-cover ratio (2.57x) was below average (2.64x) while indirect takedown (52.5%) was also weaker than average (65.1%).

[BRIEFING.COM] The major averages remain under pressure at midday as rising oil prices and elevated Treasury yields weigh broadly on equities. The S&P 500 (-0.4%), Nasdaq Composite (-0.7%), and DJIA (-0.8%) trade near their session lows, with eight of the 11 S&P 500 sectors in negative territory.

Crude oil remains a central headwind, with WTI up $4.61 (+4.5%) to $106.01 per barrel, moving back above its earlier highs and to its highest level since late May. Oil is now nearly $20 per barrel higher in September as the conflict with Iran drags on. The surge has propelled the energy sector (+2.1%) well ahead of the rest of the market, extending the group's standout performance in 2026.

Treasury yields are adding to the difficult backdrop, with the 10-year note yield (4.99%) hovering near 5.0%. The combination of higher oil prices and elevated rates has contributed to weak participation. The consumer discretionary sector (-1.4%) is the weakest performer amid persistent concerns about inflation pressuring consumer-company profit margins. Rate-sensitive homebuilders are also struggling as Treasury yields remain elevated, while Chipotle Mexican Grill (CMG 34.76, -2.27, -6.13%) and Carvana (CVNA 67.74, -3.13, -4.42%) are among the group's more pronounced individual laggards.

Mega-cap weakness is contributing additional pressure, with the Vanguard Mega Cap Growth ETF down 0.6%. The communication services sector (-1.2%) is among the larger decliners, while the information technology sector (-0.2%) holds a more modest loss as semiconductor stocks attempt to stabilize following yesterday's sharp retreat. The PHLX Semiconductor Index (+0.2%) remains positive but has surrendered the bulk of an earlier gain that approached 2.0%.

The financials sector (-0.8%) also remains under pressure. Coinbase Global (COIN 179.71, -11.74, -6.13%) and Robinhood Markets (HOOD 111.64, -2.69, -2.35%) are notable laggards as Bitcoin gives back yesterday's gain, while major banking names remain weak after Bank of America (BAC 59.05, -0.42, -0.70%) said it expects a weaker third quarter.

There are a few pockets of relative strength outside the energy sector. The materials sector (+0.1%) has edged into positive territory, while the health care sector is unchanged after reclaiming its flat line.

Corporate headlines have been relatively quiet and have not had much influence on the broader market, leaving macro considerations firmly in control of today's action. Some caution ahead of tomorrow's FOMC decision could also be contributing to the subdued tone, with the CME FedWatch Tool currently assigning a 92.5% probability to a 25-basis-point rate hike. For now, the combination of crude oil above $106 per barrel, the 10-year yield near 5.0%, and uncertainty ahead of the FOMC is keeping buying interest limited.

Reviewing today's data:

• September Empire State Manufacturing 7.6 (Briefing.com consensus 14.1); Prior 20.6

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-0.7%), and DJIA (-0.9%) are a touch off their session lows at midday.

The major averages are little changed from previous levels, though the materials (+0.1%) and health care (flat) sectors have reclaimed their flat lines.

Meanwhile, the financials sector (-0.8%) remains near session lows, with Coinbase Global (COIN 180.11, -11.34, -5.92%) and Robinhood Markets (HOOD 112.02, -2.31, -2.02%) among the worst performers as Bitcoin gives back yesterday's gain, currently down around 2.5%. Major banking names also remain under pressure after Bank of America (BAC 59.04, -0.42, -0.71%) said it expects a weaker third quarter.

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-0.7%), and DJIA (-0.9%) are a touch off their session lows at midday. The consumer discretionary sector (-1.5%) is the worst-performing S&P 500 sector amid persistent concerns about inflation pressuring consumer-company profit margins. The group is down 4.3% in September and remains the worst-performing sector this year with a 4.7% decline in 2026.

Homebuilders are also contributing to the weakness as Treasury yields continue to rise, with the iShares U.S. Home Construction ETF (ITB) down 1.4% and approaching its lowest close since mid-May.

Chipotle Mexican Grill (CMG 34.84, -2.20, -5.93%) and Carvana (CVNA 68.02, -2.84, -4.01%) are among the sector's more pronounced laggards, with CMG falling back toward its 50-day (35.13) and 200-day (35.00) moving averages and Carvana slipping below its 50-day moving average (69.33).

[BRIEFING.COM] The S&P 500 (-0.5%), Nasdaq Composite (-0.8%), and DJIA (-0.9%) sit at session lows just before midday as rising oil prices and elevated Treasury yields continue to exert broad pressure across stocks. Currently, WTI crude is back near its overnight highs, up $3.35 (+3.3%) to $104.74 per barrel. The ten-year note yield is up four basis points to 4.99%.

Participation is poor so far, with decliners outpacing advancers by a roughly 2-to-1 ratio on the NYSE and a nearly 3-to-1 clip on the Nasdaq.

Additionally, mega-cap stocks trend mostly lower, with the Vanguard Mega Cap Growth ETF down 0.6%. The consumer discretionary (-1.4%) and communication services (-1.2%) sectors are among the worst-performing S&P 500 sectors as a result, while the information technology while the information technology sector (-0.2%) holds a more modest loss amid a modest rebound in semiconductor names.

The energy sector (+1.9%) is the only S&P 500 sector that trades higher as oil prices continue to rise this morning.

[BRIEFING.COM] The major averages continue to chart session lows this morning, as semiconductor stocks pull back from their early highs.

Skyworks (SWKS 87.35, +8.09, +10.21%) remains the best-performing S&P 500 component, though the PHLX Semiconductor Index (+0.4%) holds just a portion of its earlier gain that neared 2%.

The index is down 5.4% week-to-date, which moves it into negative month-to-date territory (-3.0%) and further below its 50-day moving average, which was violated last week.

[BRIEFING.COM] The S&P 500 (-0.4%), Nasdaq Composite (-0.6%), and DJIA (-1.0%) continue to move lower this morning against a hostile macro backdrop for equities today.

Corporate headlines are relatively quiet today, though there are still a few notable moves. Forgent Power Solutions (FPS 32.14, +3.50, +12.22%) is higher after a solid beat-and-raise earnings report, while Waystar Holding Corp. (WAY 27.02, +2.12, +8.51%) surges following reports that the healthcare software and revenue cycle management company is exploring strategic options, including a potential full sale that could take the company private just two years after its initial public offering.

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.2%), and DJIA (-0.7%) are moving lower again this morning as elevated oil prices and Treasury yields continue to pressure the market.

The 10-year note yield is up five basis points to 5.0%, down from the morning's highs but still pushing multi-year highs. Meanwhile, crude oil is up $1.90 (+1.9%) to $103.32 per barrel, pushing towards its highest overnight levels.

Weakness is broad, with the energy sector (+1.3%) leading as oil moves higher.

The information technology sector (+0.2%) is the only other S&P 500 sector that trades higher, which helps soften losses at the index level. The PHLX Semiconductor Index is up 1.3% as semiconductor stocks rebound from yesterday's sharp retreat.

Equity futures now point to a modestly higher open, following some relief in oil prices and Treasury yields. The 10-year note yield sits at 4.99% after pushing to 5.04% earlier, while crude oil hovers around the $102 per barrel mark after eclipsing $104 per barrel.

Semiconductor stocks are adding to the improved sentiment, with the group on track for a modest rebound at the open after yesterday's retreat.

The &P 500 futures currently trade seven points above fair value. 

Equity indices in the Asia-Pacific region ended Tuesday on a lower note. China's growth figures for August showed below-consensus Retail Sales growth due to weak auto sales coupled with above-consensus Industrial Production growth. China's National Bureau of Statistics said that the economy was steady in August, though there were deepening negative impacts from the external environment. Japan is considering an increase to its defense spending target to 3.5% of GDP from the current 2.0%.

• In economic data:
  • China's August Retail Sales increased 0.4% yr/yr (expected 0.7%; last 0.6%).
  • China's August Industrial Production increased 5.2% yr/yr (expected 4.8%; last 4.5%).
  • China's August Fixed Asset Investment decreased 7.2% yr/yr (expected -7-1%; last -6.7%).
  • China's August House Prices decreased 3.0% (last -3.2%).
  • China's August Unemployment Rate was 5.3% (expected 5.2%; last 5.2%).
  • Japan's July Tertiary Industry Activity Index was 0.9 (last 5.4).
  • South Korea's August Import Price Index increased 15.6% yr/yr (last 18.8%).
  • South Korea's August Export Price Index increased 42.4% yr/yr (last 48.9%).
  • South Korea's August trade surplus was $34.79 bln (expected surplus of $34.75 bln; last surplus of $30.39 bln).
  • South Korea's August Imports increased 22.4% yr/yr (expected 22.5%; last 26.5%).
  • South Korea's August Exports increased 68.7% yr/yr (expected 68.7%; last 63.0%).
  • New Zealand's August Electronic Card Retail Sales decreased 0.9% m/m (last 1.2%) and increased 0.2% yr/yr (last 3.4%).
  • India's August trade deficit was $26.86 bln (last deficit of $31.98 bln).

---Equity Markets---

• Japan's Nikkei: UNCH
• Hong Kong's Hang Seng: -1.0%
• China's Shanghai Composite: -0.5%
• India's Sensex: -1.0%
• South Korea's Kospi: -0.9%
• Australia's ASX All Ordinaries: -0.8%

Major European indices are mixed, but little changed overall. The Bank of England plans to stop active sales of 20- and 30-yr Gilts, aiming to slow rising yields. European Central Bank policymaker Moulin said that last week's rate hike was justified by the inflation outlook, adding that member states need to reduce the overall budget deficit.

• In economic data:
  • The eurozone's September ZEW Economic Sentiment was 25.8 (expected 39.2; last 31.4).
  • The eurozone's July trade surplus was EUR14.2 bln (expected surplus of EUR3.7 bln; last surplus of EUR7.2 bln).
  • Germany's September ZEW Economic Sentiment was 34.7 (expected 39.8; last 34.2).
  • Germany's September ZEW Current Conditions was -47.1 (expected -53.0; last -61.1).
  • Germany's August WPI increased 0.9% m/m (expected 0.1%; last 0.2%) and 6.8% yr/yr (last 5.3%).
  • The U.K.'s July three-month employment change was 67,000 (last 83,000).
  • The U.K.'s July Average Earnings Index + Bonus increased 3.9% yr/yr, as expected (last 4.2%).
  • The U.K.'s July Unemployment Rate was 4.9% (expected 5.0%; last 4.9%).
  • The U.K.'s August Claimant Count Change was 27,800 (expected 8,300; last -11,800).
  • France's August CPI increased 0.7% m/m, as expected (last 0.6%), and 2.4% yr/yr, as expected (last 2.1%).
  • Italy's July trade surplus was $8.240 bln (expected surplus of $4.770 bln; last surplus of $4.343 bln).
  • Spain's August CPI increased 0.7% m/m, as expected (last 0.3%), and 4.3% yr/yr, as expected (last 3.6%).
  • Spain's August Core CPI increased 2.9% yr/yr, as expected (last 3.0%).

---Equity Markets---

• STOXX Europe 600: unch
• Germany's DAX: +0.2%
• U.K.'s FTSE 100: -0.2%
• France's CAC 40: -0.1%
• Italy's FTSE MIB: +0.3%
• Spain's IBEX 35: +0.5%

Equity futures continue to point to a flattish opening this morning. 

The latest corporate development comes from Salesforce (CRM 254.30, -5.13, -1.98%) and Siemens (SIEGY 150.67, -0.91, -0.60%), which are combining Agentforce with Siemens' Teamcenter Service Lifecycle Management platform. The integration is intended to bring engineering-grade answers into industrial sales, service, and customer workflows. Siemens (SIEGY 150.67, -0.91, -0.60%) is also using Agentforce to engage and qualify inbound leads for its 18,000 sellers.

On the data front, the September Empire State Manufacturing Index contracted to 7.6 (Briefing.com consenus 14.1) from the previous reading of 20.6.

Equity futures point to a flat opening this morning as investors contend with another difficult backdrop of elevated interest rates, crude oil above $100 per barrel, and lingering concerns surrounding the pace of AI development.

Stocks are coming off a lower finish yesterday, when semiconductor and AI-infrastructure names faced sharp selling pressure. Those losses were partially offset by a surge across software stocks and a sizable retreat in crude oil from its highest levels of the session.

The 10-year note yield sits at 4.99%, keeping rates near the forefront ahead of Wednesday's FOMC decision. The CME FedWatch Tool currently assigns a 92.5% probability to a 25-basis-point rate hike tomorrow.

Meanwhile, continued uncertainty surrounding AI safety remains an added headwind for technology stocks following yesterday's pronounced semiconductor weakness.

Today's remaining economic calendar:

• 8:30 AM ET: September Empire State Manufacturing; Briefing.com consensus 14.1; prior 20.6

In corporate news:

• NVIDIA (NVDA 212.33, +1.37, +0.7%), Palantir (PLTR 170.76 -2.55, -1.5%), and Booz Allen Hamilton restrict AI model use, according to The Information. 
• Vera Therapeutics (VERA 38.62, +4.57, +13.42%) said atacicept met all final efficacy endpoints in the Phase 3 ORIGIN study in IgA nephropathy.
• Flex (FLEX 113.65, +5.33, +4.92%) named Amy Schwetz CFO of its RMS and ITS segments and said she is expected to become company CFO after the planned separation of its Cloud and Power Infrastructure business.

Reviewing overnight developments:

Equity markets ended mostly lower as investors assessed mixed August growth data from China. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: -1.0%, China's Shanghai Composite: -0.5%, India's Sensex: -1.0%, South Korea's Kospi: -0.9%, Australia's ASX All Ordinaries: -0.8%.

In news:

• China's National Bureau of Statistics said the economy remained steady in August but noted deepening negative effects from the external environment.
• Japan is considering raising its defense spending target to 3.5% of GDP from 2.0%.

In economic data:

• China's August Retail Sales 0.4% yr/yr (expected 0.7%; last 0.6%), Industrial Production 5.2% yr/yr (expected 4.8%; last 4.5%), Fixed Asset Investment -7.2% yr/yr (expected -7-1%; last -6.7%), and House Prices -3.0% (last -3.2%). August Unemployment Rate 5.3% (expected 5.2%; last 5.2%)
• Japan's July Tertiary Industry Activity Index 0.9 (last 5.4)
• South Korea's August Import Price Index 15.6% yr/yr (last 18.8%) and Export Price Index 42.4% yr/yr (last 48.9%). August trade surplus $34.79 bln (expected surplus of $34.75 bln; last surplus of $30.39 bln). August Imports 22.4% yr/yr (expected 22.5%; last 26.5%) and Exports 68.7% yr/yr (expected 68.7%; last 63.0%)
• New Zealand's August Electronic Card Retail Sales -0.9% m/m (last 1.2%); 0.2% yr/yr (last 3.4%)
• India's August trade deficit $26.86 bln (last deficit of $31.98 bln)

Major indices are mixed and little changed overall amid central-bank commentary and a busy slate of economic data. STOXX Europe 600: -0.1%, Germany's DAX: UNCH, U.K.'s FTSE 100: -0.2%, France's CAC 40: -0.2%, Italy's FTSE MIB: UNCH, Spain's IBEX 35: +0.1%.

In news:

• The Bank of England plans to stop active sales of 20- and 30-year Gilts in an effort to slow rising yields.
• European Central Bank policymaker Moulin said last week's rate increase was justified by the inflation outlook and called for member states to reduce budget deficits.

In economic data:

• Eurozone's September ZEW Economic Sentiment 25.8 (expected 39.2; last 31.4) and July trade surplus EUR14.2 bln (expected surplus of EUR3.7 bln; last surplus of EUR7.2 bln)
• Germany's September ZEW Economic Sentiment 34.7 (expected 39.8; last 34.2) and ZEW Current Conditions -47.1 (expected -53.0; last -61.1). August WPI 0.9% m/m (expected 0.1%; last 0.2%); 6.8% yr/yr (last 5.3%)
• U.K.'s July three-month employment change 67,000 (last 83,000), July Average Earnings Index + Bonus 3.9% yr/yr, as expected (last 4.2%), July Unemployment Rate 4.9% (expected 5.0%; last 4.9%), and August Claimant Count Change 27,800 (expected 8,300; last -11,800)
• France's August CPI 0.7% m/m, as expected (last 0.6%); 2.4% yr/yr, as expected (last 2.1%)
• Italy's July trade surplus $8.240 bln (expected surplus of $4.770 bln; last surplus of $4.343 bln)
• Spain's August CPI 0.7% m/m, as expected (last 0.3%); 4.3% yr/yr, as expected (last 3.6%). August Core CPI 2.9% yr/yr, as expected (last 3.0%)

[BRIEFING.COM] The major averages started the week on a lower note as a sharp selloff in semiconductor stocks and another increase in crude oil overshadowed strength across software, defensive groups, and select mega-cap names. The S&P 500 (-0.5%), Nasdaq Composite (-0.6%), and DJIA (-0.3%) finished with modest losses after spending much of the session well below their opening levels, while the S&P 500 Equal Weighted Index ended unchanged.

Selling was considerably more pronounced during the morning, when the S&P 500 briefly slipped below 7,600 as crude oil topped $104 per barrel and the 10-year note yield moved above 5.0%. Those pressures moderated as the day progressed, allowing the major averages to recover a sizable portion of their early declines.

The retreat in oil from its session high was an important factor behind the market's recovery. WTI crude settled $1.15 higher (+1.2%) at $101.23 per barrel, well below its morning peak. The initial surge followed the shutdown of Saudi Arabia's East-West pipeline and the postponement of planned discussions between Gulf states and Iran regarding shipping through the Strait of Hormuz. Some of the geopolitical pressure subsequently eased after President Trump said Iran wants to reach an agreement quickly and that the U.S. is open to talks.

The day's most pronounced weakness was concentrated in semiconductor and AI infrastructure stocks. The PHLX Semiconductor Index plunged 5.9%, dragging the information technology sector (-1.7%) lower as renewed debate surrounding AI safety raised the possibility that development of increasingly powerful models could eventually face constraints. Weakness spilled into other beneficiaries of the AI infrastructure buildout, contributing to the industrials sector's (-1.4%) decline. Corning (GLW 143.50, -22.90, -13.76%), Teradyne (TER 329.20, -50.52, -13.30%), and Coherent (COHR 266.50, -38.87, -12.73%) were among the worst-performing S&P 500 components, with Corning facing the additional headwind of a prospectus supplement related to an equity distribution agreement covering up to $2 billion of common stock.

OpenAI CEO Sam Altman's indication that an IPO this year would be ill-advised provided another talking point surrounding the AI landscape.

The other side of the AI trade looked dramatically different. The iShares GS Software ETF surged 5.0%, led by outsized gains in cybersecurity stocks as concerns surrounding increasingly autonomous AI systems drew greater attention to potential security threats. CrowdStrike (CRWD 235.38, +28.64, +13.85%), Palo Alto Networks (PANW 373.94, +43.29, +13.09%), and Gartner (IT 197.07, +17.48, +9.73%) finished among the best-performing S&P 500 components, creating a stark contrast with the heavy selling across semiconductor stocks.

Strength elsewhere also helped keep the broader market's losses relatively contained. Alphabet (GOOG 345.71, +10.26, +3.06%) and Meta Platforms (META 665.60, +17.57, +2.71%) powered the communication services sector (+2.8%) to the top of the standings, while investors also gravitated toward defensive areas.

The health care (+1.4%) and consumer staples (+1.3%) sectors posted solid gains, with Kroger (KR 60.91, +2.42, +4.14%) extending its positive momentum following last week's earnings report. The utilities sector (-1.3%) was a notable exception to the defensive strength.

Monday's session ultimately featured a sharp rotation beneath relatively modest losses for the major averages. Semiconductor and AI infrastructure stocks bore the brunt of the selling, while software, cybersecurity, communication services, and defensive groups provided meaningful offsets. The recovery from the morning lows also coincided with some easing in two major macro headwinds as crude retreated from above $104 and the 10-year yield moved back below 5.0%, although soft market breadth suggested buying interest remained selective. Attention now shifts to Wednesday's FOMC decision as the week's primary scheduled catalyst.

There was no economic data of note today.

U.S. Treasuries began the week with modest gains in most tenors after an early continuation of last week's selling found mid-morning resistance, sparking a shallow bounce. The 2-year note yield settled down one basis point to 4.63% and the 10-year note yield settled down one basis point to 4.96%. 

• Russell 2000: +16.5% YTD
• Nasdaq Composite: +12.7% YTD
• S&P Mid Cap 400: +11.3% YTD
• S&P 500: +11.3% YTD
• DJIA: +9.1% YTD

There was no economic data of note today.