S&P 500 – 7,656.98 (+0.86%)

Dow Jones – 52,573.29 (+0.98%)

NASDAQ – 26,333.04 (+0.96%)

• INFLATION REMAINS STICKY: Headline CPI climbed 3.4% year over year in August, while core CPI rose 2.4%. Monthly headline inflation increased 0.4%, matching expectations, while core prices advanced 0.3%, topping the 0.2% consensus forecast and reinforcing expectations for a Federal Reserve rate hike next week.
• OIL PRICES PULL BACK: Oil prices moved lower following reports that several Gulf states could meet with Iran next week to discuss a temporary agreement aimed at easing hostilities and managing shipping through the Strait of Hormuz. The decline offered some relief to markets concerned about renewed energy-driven inflation.
• TREASURY YIELDS RISE: Treasury yields moved higher, particularly at the short end of the curve, as expectations for a Fed rate hike next week strengthened. Higher yields continue to create pressure for rate-sensitive areas of the stock market.
• ORACLE DELIVERS A BIG BEAT: Oracle (ORCL) surged after posting stronger-than-expected quarterly earnings and revenue, fueled by robust cloud growth. Investors appeared especially focused on the company’s fiscal 2027 revenue forecast of at least $90 billion, which topped Wall Street expectations.
• ADOBE FACES AI PRESSURE: Adobe (ADBE) slipped despite beating earnings expectations and matching revenue estimates. Shares remain down sharply this year as investors weigh concerns that AI could disrupt demand for Adobe’s products, while Citigroup highlighted slowing recurring revenue growth.
• INTERNATIONAL PAPER GETS AN UPGRADE: International Paper (IP) gained after Bank of America upgraded the stock to Buy from Neutral and raised its containerboard price forecasts, giving the shares a fresh catalyst.
• RH JUMPS ON STRONG EARNINGS: RH (RH) climbed after the luxury furniture retailer delivered stronger-than-expected earnings, putting the stock in focus as investors assess the strength of higher-end consumer spending.
• MICROSOFT EXPANDS AI INFRASTRUCTURE: Microsoft (MSFT) edged higher after reports that the company plans to triple its data-center capacity by 2032. The move highlights the enormous infrastructure investment being driven by AI and cloud demand.
• OKLO SLIDES ON EQUITY OFFERING: Oklo (OKLO) dropped after announcing a new equity offering program, putting potential share dilution back on investors’ radar.
• SEMIS REMAIN UNDER PRESSURE: Semiconductor stocks continue to face a challenging setup as rising Treasury yields compete with the sector’s strong AI-growth narrative. Concerns surrounding potential AI risks have added another layer of uncertainty, while the PHLX Semiconductor Index (SOX) has fallen more than 20% from its June peak, placing it in bear-market territory.
• GLOBAL MARKETS RETREAT: Asian stock indexes finished the week lower as investors positioned for a possible Bank of Japan rate hike next week. European markets also declined for the week following the European Central Bank’s rate increase, while gold fell more than 2% as higher-rate expectations weighed on the precious metal.
• S&P 500 WATCHES KEY SUPPORT: The S&P 500 finished Thursday near its 50-day moving average at approximately 7,590, putting the technical level firmly in focus. The index had not traded below its 50-day average since late July. A sustained break below the level could signal weakening momentum, while the 100-day moving average near 7,500 could emerge as another potential support zone.
• TARIFF REFUNDS TAPER OFF: The U.S. government’s tariff refund program is showing signs of winding down, with August marking the first month since April that tariff collections exceeded refunds. The Treasury reported $23.3 billion in tariff revenue versus $10.5 billion in refunds, down sharply from previous months.
• COINBASE LOOKS BEYOND CONGRESS: Coinbase (COIN) says clearer U.S. crypto regulation could still advance through the SEC and CFTC even if Congress fails to pass the Clarity Act. The company believes regulatory agencies could provide alternative paths for new products and services.
• DELL RIDES THE AI WAVE: Dell Technologies (DELL) hit a record high as investors continued to target companies benefiting from the AI data-center buildout. The company’s AI-optimized server revenue doubled to $16.4 billion last quarter, highlighting the strength of demand for AI infrastructure.

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“Fall seven times, stand up eight.” 

— Japanese Proverb

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Notable Stocks

• Oklo (OKLO)
• Microsoft (MSFT)
• RH (RH)
• Oracle (ORCL) 
• Dell (DELL)

Weekly Notables

L’Oreal Faces New Legal Pressure Over Hair Relaxer Cancer Claims

Arizona has taken legal action against L’Oreal, accusing the cosmetics giant of failing to disclose potential cancer risks associated with certain hair-relaxer products. Arizona Attorney General Kristin Mayes filed the lawsuit Thursday in state court, making Arizona the first state to bring a case against a hair-relaxer manufacturer over alleged cancer risks. The lawsuit claims L’Oreal marketed the products, which are used predominantly by African American women, without adequately warning consumers about potential links to ovarian and uterine cancers.

Uber Looks to Cut Ride Prices After Layoffs

Uber (UBER) could lower ride prices after cutting roughly 10% of its corporate workforce, or about 3,300 employees. CEO Dara Khosrowshahi said the company plans to reinvest savings from the layoffs into the business, including lower fares, better ride selection and continued growth initiatives. Uber also expects to use savings from lower insurance costs to help reduce prices and keep riders on the platform.

Earnings Spotlight: Lennar (LEN)

Lennar will release Q3 results on September 16. The company's own guidance from the Q2 release sets the bar. LEN projects new orders of 21,000–22,000 homes, deliveries of 20,500–21,500 homes, an average sales price of $375,000–$380,000, a gross margin of approximately 16%, SG&A of 8.8%–9.0%, and EPS of $1.20–$1.40, excluding mark-to-market items.

What to Watch Ahead:

September 14: No major earnings or data expected.
September 15: No major earnings or data expected.
September 16: Fed rate decision and expected earnings from Lennar (LEN).
September 17: August housing starts and building permits.
September 18: Bank of Japan rate decision, August industrial production, and Conference Board August leading indicators.