Opening Comment — Tuesday, September 02, 2025
DJIA: 45,544.88, down 92.02
S&P 500: 6,460.26, down 41.60
NASDAQ: 21,455.55, down 249.61
Stocks lower ahead of PMI data
Stock futures are lower Tuesday morning following a Friday evening announcement from a federal appeals court upholding a prior decision that much of President Donald Trump’s widespread use of global tariffs exceeded presidential authority, but left them in effect as appeals take place. Investors are also looking forward to today’s August manufacturing purchasing managers’ index (PMI) data release from the Institute for Supply Management (ISM) and a finalized reading from S&P Global. Later in the week, Friday’s job report for August will be closely watched. As of 7:17 AM ET, the Dow is decreasing 0.6%, while the S&P 500 is down 0.7%. The Nasdaq 100 is falling 0.9% relative to fair value on the GLOBEX.
U.S. equities were lower on Friday as the core Personal Consumption Expenditures Deflator, the Federal Reserve’s (Fed’s) preferred gauge of inflation, rose 0.3% month-over-month (MOM) and 2.9% year-over-year (YOY) in July, both in line with expectations. Both personal income and personal spending for July posted increases of 0.4% and 0.5% MOM, respectively. The advance goods trade deficit widened more than expected in July, while the preliminary reading of wholesale inventories for July increased more than projected. The Dow was down 0.2%, while the tech-heavy Nasdaq Composite fell 1.2%. The S&P 500 decreased 0.6% with five of 11 sectors finishing in negative territory. The Health Care sector was the top performer, rising 0.7%, while the Information Technology sector was the bottom performer, falling 1.6%.
On the data front, the finalized reading of S&P Global’s manufacturing PMI for August is expected to remain unchanged from the preliminary reading of 53.3. The Institute for Supply Management’s manufacturing PMI and prices paid component for August are expected to come in at 49.0 and 65.0, respectively, versus the prior month’s 48.0 and 64.8, respectively. Construction spending is projected to have decreased 0.1% MOM in July, versus the prior month’s decrease of 0.4%.
Across the pond, European stocks are lower in mid-day trading as the eurozone’s preliminary August Consumer Price Index (CPI) accelerated to 0.2% MOM and 2.1% YOY. Yesterday’s economic releases showed the unemployment rate in the eurozone was reported at 6.2% for July, down from an upwardly revised 6.3% in the previous month; the U.K.’s Nationwide House Price Index for August showed a decline of 0.1% MOM and a smaller than expected increase of 2.1% YOY; and Germany’s preliminary August CPI rose 0.1% MOM and 2.2% YOY.
Overnight in Asia, stocks were mixed as South Korea’s August data showed the CPI coming in cooler than projected, the trade surplus narrowing less than expected, and the manufacturing PMI remaining in contractionary territory. Australia’s Melbourne Institute inflation gauge recorded a decrease of 0.3% MOM and increase of 2.8% YOY in August. China’s August manufacturing PMI rose slightly, but remained in contractionary territory, and the country’s non-manufacturing PMI rose more than expected into expansionary territory. The country’s private August manufacturing PMI rose more than expected, entering just into expansionary territory.
In FOREX trading, the dollar is higher ahead of the U.S PMI data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 3.0% higher at $65.90/barrel amid Russian supply concerns and Organization of the Petroleum Exporting Countries Plus talks.
In the metals complex, gold is 1.0% higher at $3,521.20/ounce despite a strengthening dollar.
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