U.S. equities are set to open lower following the Labor Day weekend as oil approaches $100 per barrel and renewed Middle East hostilities add to inflation concerns ahead of this week’s PPI and CPI reports. At 4:48 a.m. ET, Dow futures were down 0.89%, S&P 500 futures were down 0.39% and Nasdaq 100 futures were down 0.18%. Friday, the Dow fell 0.51%, the S&P 500 declined 0.38% and the Nasdaq slipped 0.29%, while the Russell 2000 gained about 0.2%. August payrolls increased 162,000 versus 56,000 expected, lifting the market-implied probability of a September Fed hike to roughly 58%-60%.
Friday’s 2-year Treasury yield rose 4 basis points to 4.38%, the 10-year gained 1 basis point to 4.78% and the 30-year slipped 1 basis point to 5.25%. The long end is under renewed pressure this morning, with the 10-year near 4.80%-4.81% and the 30-year around 5.27%. The DXY has eased to roughly 98.93 from Friday’s 99.14 close. The euro is near $1.1615, sterling around $1.3525, while the dollar has fallen sharply toward ¥154 after briefly touching ¥152.89 as markets price a Bank of Japan hike next week and yen carry trades unwind.
October WTI settled Friday at $91.42 but has surged toward $94, reaching an intraday high around $94.73 after Houthi attacks forced Saudi Arabia to halt operations at some energy facilities and Iran threatened broader retaliation against U.S. and Gulf energy infrastructure. Brent has traded above $99. December gold, which fell 1.33% Friday to $4,479.60, is near $4,435 this morning as higher oil prices increase Fed-tightening risk despite a softer dollar.
Today’s domestic calendar is relatively light. August NFIB Small Business Optimism is the main morning release, followed by a 3-year Treasury auction at 1:00 p.m. ET and July consumer credit at 3:00 p.m. The larger macro events arrive later in the week: August PPI is due Thursday and CPI Friday, the final major inflation readings before the September 15-16 FOMC meeting. The Fed entered its pre-meeting communications blackout period on September 5.
Company News by GICS Sector
Sector performance was weak beneath the surface Friday. Industrials led with a 0.41% gain, followed by Technology +0.23% and Utilities +0.04%. Consumer Discretionary fell 1.26%, Health Care declined 1.04%, Energy lost 0.98%, Consumer Staples fell 0.96%, Communication Services declined 0.94%, Real Estate lost 0.85%, Financials fell 0.76% and Materials declined 0.42%. Breadth was nearly balanced on the NYSE at negative 1.04:1, while Nasdaq breadth was modestly positive at 1.08:1.
Information Technology
- Intel (INTC +2.5% premarket) and Advanced Micro Devices (AMD +1.3%) are outperforming despite the weaker index setup as investors continue to favor semiconductor exposure tied to AI infrastructure. Nvidia (NVDA +0.2%) is also modestly higher. The relative strength contrasts with the pressure from rising Treasury yields and oil, suggesting AI-related semiconductor demand remains an important source of support for Technology.
- Apple (AAPL) is in focus ahead of Wednesday’s first major product event under new CEO John Ternus. Apple is expected to introduce its first foldable iPhone, with analysts expecting a price above $2,500, alongside updates to its premium handset lineup. The event will also put renewed attention on Apple’s revamped Siri, which uses Google AI technology for portions of its underlying functionality. Analysts cited by Reuters estimate the foldable device could generate more than $45 billion of revenue by the end of 2027.
- Apple’s product launch comes as smartphone industry growth remains weak and investors look for evidence that the company can narrow its perceived AI gap with Alphabet (GOOGL) and other platform companies. Rollout of the revamped Siri has faced regulatory delays in China and Europe, making U.S. adoption particularly important for the initial launch cycle.
- Oracle (ORCL) reports later this week in one of the final major technology earnings events of the quarter. Investor attention will center on cloud-infrastructure growth, AI-related contracted revenue and the pace at which Oracle can convert its expanding data-center backlog into reported sales.
Health Care
- Amgen (AMGN -5% to -6% premarket) is one of the largest Dow decliners after Novartis’ experimental cholesterol treatment pelacarsen failed to reduce heart attacks and strokes in a late-stage trial. The setback raises questions about the broader therapeutic approach targeting elevated lipoprotein(a), or Lp(a). Amgen’s competing treatment, olpasiran, is currently in late-stage development, increasing read-through risk for the company.
- Eli Lilly (LLY) is also modestly weaker because its experimental lepodisiran targets the same Lp(a) pathway. Analysts note that both Lilly’s and Amgen’s drugs have produced deeper reductions in Lp(a) than pelacarsen in earlier trials and are being studied in somewhat different patient populations, but Novartis’ failure raises the clinical bar for the entire drug class.
- Novartis (NVS) is down sharply in Europe after suffering a second pipeline disappointment. Its del-desiran treatment for myotonic dystrophy failed to demonstrate statistically significant improvement versus placebo in a Phase III trial, following the pelacarsen failure disclosed Friday. The two setbacks have increased scrutiny of the company’s pipeline as it prepares for future patent expirations on major established products.
- Novo Nordisk (NVO) has separately stopped two additional studies of cardiovascular drug ziltivekimab after an independent monitoring committee concluded the trials were unlikely to produce different results from an earlier failed cardiovascular-outcomes study. The development adds to broader questions surrounding several emerging approaches to reducing cardiovascular risk beyond conventional lipid therapies.
Energy
- Occidental Petroleum (OXY +2.0% premarket) and Marathon Petroleum (MPC +1.6%) are among the morning’s strongest large-cap energy names as WTI moves toward $94 and Brent approaches $100. Operations at several Saudi energy facilities were halted following Houthi attacks that wounded more than 70 people, while tanker flows through the Strait of Hormuz remain far below normal levels.
- Exxon Mobil (XOM), Chevron (CVX) and ConocoPhillips (COP) remain positioned to benefit from higher upstream prices, although the global crude market continues to receive incremental supply from the U.S., Canada and Guyana. Middle Eastern oil exports have fallen from roughly 18 million barrels per day before the Iran conflict to about 11 million, while flows through Hormuz have recently dropped below 2 million barrels per day on some estimates.
- Refiners including Marathon Petroleum (MPC), Valero Energy (VLO) and Phillips 66 (PSX) also remain exposed to unusually strong product margins. Industry executives estimate roughly 4 million barrels per day of diesel supply from Russia and the Middle East has been removed or disrupted, helping push diesel crack spreads to record levels even as crude supply remains somewhat more available.
Financials
- Coinbase (COIN -1.8% premarket) and Strategy (MSTR -2.4%) are lower as bitcoin retreats below $80,000. Robinhood (HOOD) is also weaker. Crypto-linked shares remain particularly sensitive to the combination of higher Treasury yields, a possible September Fed hike and the ongoing unwind of leveraged global carry trades.
- The sharp appreciation of the yen is becoming an additional cross-asset consideration for financial markets. The yen has gained roughly 4% in a week, its largest weekly advance since July 2024, as investors reduce short-yen positions ahead of an expected Bank of Japan rate increase. Cross-border yen borrowing reached approximately ¥360 trillion earlier this year, underscoring the potential scale of carry-trade exposure.
Consumer Discretionary
- GameStop (GME) reports fiscal second-quarter results after the close. The company previously indicated quarterly sales are likely to fall to $780-$800 million from $972.2 million a year earlier as store closures and its exit from France reduce revenue. GameStop expects net income of $290-$310 million, supported heavily by gains on its investment in eBay, while its strategic shift toward collectibles and trading cards continues.
- GameStop also recently modified its $1.4 billion convertible-note exchange, funding roughly 27% of the transaction with cash rather than stock to reduce shareholder dilution. Investors will be watching the company’s remaining liquidity, digital-asset exposure and whether management provides additional detail on its nearly 10% investment in eBay (EBAY).
- Nike (NKE) is modestly lower after S&P Dow Jones Indices announced it will leave the S&P 100, although it remains in the S&P 500. Index-related selling may create some short-term technical pressure as passive portfolios adjust their holdings.
Consumer Staples
- Casey’s General Stores (CASY) reports fiscal first-quarter results after the close. Consensus expectations are approximately $6.78 of EPS and $5.56 billion of revenue, versus $5.77 of EPS in the year-ago quarter. Investors will focus on prepared-food sales, inside-store margins and fuel profitability at a time when wholesale gasoline and crude prices are again moving sharply higher.
- Casey’s enters the quarter following a strong fiscal fourth quarter in which revenue increased 14.5% to $4.57 billion and EPS of $4.37 materially exceeded expectations. Its results will provide an early read on whether higher gasoline prices are beginning to alter convenience-store traffic or consumer spending patterns.
Industrials
- Bloom Energy (BE +4% premarket) is higher after being selected for inclusion in the S&P 500 effective September 21. Bloom has been one of the strongest beneficiaries of rising electricity demand from AI data centers, with its market capitalization climbing above $70 billion. Illumina (ILMN) and Everpure will also enter the index, replacing Molson Coors (TAP), Builders FirstSource (BLDR) and Trade Desk (TTD).
