Article by: Tide Research
On Tuesday, U.S. equities posted their first trading day following Labor Day, with all three major indices closing lower. The Dow Jones fell 1.18% to 52,786.07, dropping over 600 points; the S&P 500 declined 0.58% to 7,673.52; and the Nasdaq Composite slipped 0.32% to 26,421.41. The primary pressure on the broader market stemmed from the combined impact of geopolitical risks and inflation concerns. U.S. forces conducted strikes on targets near Iran’s Kharg Island, including Iranian oil tankers, while multiple energy facilities in Saudi Arabia were attacked by Houthi rebels in Yemen. The front-month Brent crude futures contract rose 2.46% to $99.39 per barrel, briefly nearing $100. However, the semiconductor sector bucked the trend, with Intel surging 9.05% and AMD climbing nearly 6%, while the Philadelphia Semiconductor Index gained 1.3%. Apple’s fall product launch is scheduled for 1:00 AM Beijing time on September 10, with the first foldable iPhone expected to be unveiled. This Thursday’s U.S. August CPI data will determine the direction of September interest rate hike expectations.
U.S. military strikes Iranian oil tanker, Brent crude approaches $100
Geopolitical risks were the primary downward pressure on Tuesday. U.S. forces conducted strikes on targets near Iran’s Kharg Island, including Iranian tankers. In response, Iran’s Revolutionary Guard Navy stated that relevant vessels would become targets in retaliation for the U.S. attack on Iranian tankers. Meanwhile, multiple energy and utility facilities in Saudi Arabia were attacked by Yemeni Houthi rebels, resulting in fires and temporary disruptions to operations at several sites.
As a result, international oil prices continued to rise. The benchmark Brent crude futures contract closed up 2.46% at $99.39 per barrel, briefly approaching $100 during trading; the WTI crude futures contract closed up 1.67% at $94.25 per barrel.
Intel surged 9%, leading the semiconductor sector as capital flows toward AI hardware.
Amid pressure on the broader market, the chip sector delivered an independent performance. Intel surged 9.05%, as reports indicate the company plans to raise PC CPU prices by 10%. AMD rose nearly 6%, and the Philadelphia Semiconductor Index climbed 1.3% against the trend.
The optical communications sector surged across the board, with Lumentum rising over 11% and Corning up more than 7%. Capital is shifting from macro-sensitive assets toward AI hardware and semiconductor sectors with clear industry fundamentals.
Among the Seven Giants, Tesla rose 3.98% to lead gains; NVIDIA fell 2.01%; Apple declined over 1%. The Windi U.S. Tech Seven Giants Index fell 0.74%.
Most Chinese stocks declined, with the Nasdaq China Golden Dragon Index falling 1.7%.
U.S. Treasury yields rise, inflation concerns weigh on valuations
Surging oil prices have reignited inflation concerns, pushing U.S. Treasury yields higher. The 2-year U.S. Treasury yield rose 2.72 basis points to 4.394%; the 10-year U.S. Treasury yield stood near 4.79%.
Traders are closely monitoring this week’s CPI data. Fed Governor Waller previously stated that the August inflation data would “greatly influence” his vote at the September FOMC meeting.
Today's Focus
The U.S. Treasury is conducting a repurchase of long-term Treasuries. The repurchase announcement is expected to be released at 11 p.m. tonight, targeting existing Treasuries with maturities of 10 to 20 years. Morgan Stanley estimates that $10 billion represents the approximate upper limit of the Treasury’s current operational capacity. The scale of the repurchase will directly impact the trajectory of long-term interest rates.
Apple's fall product launch. New CEO Tempus makes his debut; the event will be held at 1:00 AM Beijing Time on September 10, with market attention focused on whether the first foldable iPhone Ultra will be officially unveiled.