Market Overview

Wall Street opened the holiday‑shortened week in negative territory. At 13:07 ET the S&P 500 slipped 0.3% to 7,693.93 points, while the Dow Jones Industrial Average fell 0.9% to 52,912.54 points. The Nasdaq Composite declined only 0.1% to 26,488.28 points.

US Labor Market and Fed Outlook

The U.S. Bureau of Labor Statistics reported that August non‑farm payrolls increased by 162,000 jobs, far exceeding the 55,000 consensus estimate. The unemployment rate held steady at 4.1%. Revisions added a combined 55,000 jobs to June and July figures. The strong labor market, together with persistent inflation, heightened expectations of a Federal Reserve rate hike. The CME FedWatch tool showed the probability of a 25‑basis‑point increase in September at roughly 60%.

Monetary‑Policy Commentary

Fed Chair Kevin Warsh delivered a hawkish speech at Jackson Hole, while New York Fed President John Williams and Governor Christopher Waller offered more dovish remarks the previous week. Market participants will watch the upcoming producer‑price index (PPI) and consumer‑price index (CPI) releases for further guidance on the Fed’s September decision.

Geopolitical Tensions and Oil Markets

Brent crude futures rose 0.1% to $97.13 a barrel after briefly reaching $99.45, a 9.3% weekly gain driven by renewed U.S.–Iran military strikes – the first since July. U.S. Central Command struck three Iranian crude‑carrier vessels on Saturday in retaliation for IRGC missile attacks on two U.S. Navy warships. Iran responded by targeting six ships in the Strait of Hormuz and the Persian Gulf, including three tankers and three U.S. vessels. Iranian officials warned of a maritime exclusion zone across the Persian Gulf.

Crude‑oil exports from the Middle East in August were down 39% compared with a January‑February baseline of 18.5 million barrels per day, according to TankerTrackers.com. Drone and missile attacks on Saudi Aramco’s 400,000‑bpd Jazan refinery further heightened concerns over refined‑product supply.

Corporate Moves

Qualcomm announced a multi‑generational collaboration with Amazon to develop custom silicon and ultra‑fast optical connectivity for AI data centres. As part of the deal, Qualcomm will issue Amazon a warrant to purchase up to 25 million shares of Qualcomm common stock.

Sector Performance

The S&P 500 health‑care sector fell 2.2% after Novartis shares dropped 14% following two clinical‑trial setbacks. The decline also weighed on Amgen, a Dow component, which fell nearly 10%.

Contributors

The article was contributed by Ayushman Ojha and Pranav Kashyap.