Market Update
Debt and Budget Worries Lifts Bond Yields to Multi-Year Highs, Alphabet and Apple In Focus
Barry Adams
03 Sep, 2025
New York City
Broader market indexes struggled to rise above the flatline, following the rise in global bond yields and uncertainties linked to the U.S. trade policy.
The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite advanced 0.7% after Alphabet, the parent of the Google search engine, avoided a harsher sentence from a federal judge.
A federal court ruled that Alphabet can keep the Chrome browser but must share data with its search partners.
Alphabet soared more than 5% after the ruling, because it removed a key legal issue looming over the last five years.
The U.S. Department of Justice alleged in a court case in 2020 that the search company kept its dominance by creating strong barriers to entry and exclusive access to customer behavior.
The 10-year yield on the U.S. Treasury bond increased to 4.28% amid growing worries about record-high federal government debt and uncertainty related to debt ceiling negotiations.
The yields on bonds of the UK, France, and Japan rose to multi-year highs as governments struggle with record debt levels and pursue higher defense spending.
U.S. Stock Movers
Alphabet Inc. jumped 5.4% to $223.38 after a federal judge ruled that the parent of the Google search engine operator can keep its Chrome browser.
The ruling also prevented the search company from striking exclusive search deals and required it to share key search data with its customers.
Apple Inc. jumped 3.7% to $238.26 following the federal court's decision regarding Google parent Alphabet Inc.
The court's ruling will allow the popular mobile phone maker to continue preloading Google Search onto its iPhones and other electronic devices for a fee.
“Google will not be barred from making payments or offering other consideration to distribution partners for preloading or placement of Google Search, Chrome, or its GenAI products,” the decision states.
The latest ruling allows Apple and other mobile device makers to strike additional deals with Google for AI-related products.
Macy's Inc. soared 12% to $15.12, and the apparel and accessories retailer reported better-than-expected second-quarter results and lifted its full-year outlook.
The retailer posted adjusted earnings of 41 cents per share on $4.81 billion in revenue in the fiscal second quarter.
The company revised its full-year adjusted earnings per share estimate to between $1.70 and $2.05 from $1.60 and $2.0 and sales between $21.15 billion and $21.45 billion from the previous range between $21.0 billion and $21.40 billion, respectively.
Zscaler Inc. jumped 1.8% to $278.90 after the cybersecurity company delivered better-than-expected fiscal fourth-quarter results and the company's guidance surpassed expectations.
Consolidated revenue increased to $719.2 million from $592.9 million, net loss advanced to $17.6 million from $14.9 million, and diluted losses per share expanded to 11 cents from 10 cents a year ago.
Zscaler guided fiscal first-quarter 2026 revenue to be between $772 million and $774 million, non-GAAP income from operations between $166 million and $168 million, and non-GAAP net income per share between 85 cents and 86 cents.
The cybersecurity company estimated fiscal full-year 2026 revenue to be between $3.265 billion and $3.284 billion, non-GAAP income from operations between $728 million and $736 million, and non-GAAP net income per share between $3.64 and $3.6.
Stock Movers: Signet Jewelers, Zscaler
Scott Peters
03 Sep, 2025
New York City
Signet Jewelers Ltd. advanced 6.2% to $93.50 after the specialty retailer's quarterly results surpassed market expectations.
Revenue in the fiscal second quarter ending on August 2 increased 3% to $1.5 billion, driven by a same-store sales increase of 2%.
The price increases drove gross margin expansion by 60 basis points. 38.6%
Net loss in the quarter shrank to $9.1 million from $101.5 million, and diluted loss per share eased to 22 cents from $2.28 a year ago.
Signet declared a cash dividend of 32 cents per share on November 21 to shareholders on record on October 24.
The company revised the full-year fiscal 2026 sales estimate from the previous range between $6.57 billion and $6.80 billion to a new range between $6.67 billion and $6.82 billion.
The same-store sales growth estimate was revised to between a decrease of 0.75% and an increase of 1.75% from the previous estimate of between a decline of 2.0% and an increase of 1.50%.
The company's guidance adjusted annual diluted earnings per share to a new range between $8.04 and $9.57 from the previous range between $7.70 and $9.38.
Zscaler Inc. fell 0.9% to $274.57 after the cloud security provider reported an 18% increase in net loss in the fourth quarter ending on July 31.
Consolidated revenue increased 21% to $719.2 million from $592.9 million, net loss advanced to $17.6 million from $14.9 million, and diluted losses per share expanded to 11 cents from 10 cents a year ago.
Zscaler estimated fiscal first quarter revenue to be between $772 million and $774 million, adjusted income from operations between $166 million and $168 million, and adjusted net income per share between 85 cents and 86 cents.
Non-GAAP net income expanded to $146.7 million from $115.8 million in the fourth quarter of fiscal 2024.
Zscaler guided full-year fiscal 2026 revenue to be between $3.265 billion and $3.284 billion, adjusted income from operations between $728 million and $736 million, and adjusted net income per share between $3.64 and $3.6.
Stock Movers: Signet Jewelers, Zscaler
Scott Peters
03 Sep, 2025
New York City
Signet Jewelers Ltd. advanced 6.2% to $93.50 after the specialty retailer's quarterly results surpassed market expectations.
Revenue in the fiscal second quarter ending on August 2 increased 3% to $1.5 billion, driven by a same-store sales increase of 2%.
The price increases drove gross margin expansion by 60 basis points. 38.6%
Net loss in the quarter shrank to $9.1 million from $101.5 million, and diluted loss per share eased to 22 cents from $2.28 a year ago.
Signet declared a cash dividend of 32 cents per share on November 21 to shareholders on record on October 24.
The company revised the full-year fiscal 2026 sales estimate from the previous range between $6.57 billion and $6.80 billion to a new range between $6.67 billion and $6.82 billion.
The same-store sales growth estimate was revised to between a decrease of 0.75% and an increase of 1.75% from the previous estimate of between a decline of 2.0% and an increase of 1.50%.
The company's guidance adjusted annual diluted earnings per share to a new range between $8.04 and $9.57 from the previous range between $7.70 and $9.38.
Zscaler Inc. fell 0.9% to $274.57 after the cloud security provider reported an 18% increase in net loss in the fourth quarter ending on July 31.
Consolidated revenue increased 21% to $719.2 million from $592.9 million, net loss advanced to $17.6 million from $14.9 million, and diluted losses per share expanded to 11 cents from 10 cents a year ago.
Zscaler estimated fiscal first quarter revenue to be between $772 million and $774 million, adjusted income from operations between $166 million and $168 million, and adjusted net income per share between 85 cents and 86 cents.
Non-GAAP net income expanded to $146.7 million from $115.8 million in the fourth quarter of fiscal 2024.
Zscaler guided full-year fiscal 2026 revenue to be between $3.265 billion and $3.284 billion, adjusted income from operations between $728 million and $736 million, and adjusted net income per share between $3.64 and $3.6.
Japan's Stocks Lacked Direction After BoJ Signaled Gradual Rate-Hike Approach
Akira Ito
03 Sep, 2025
Tokyo
Japan's stock market indexes eased, following losses in overnight trading on Wall Street.
The Nikkei 225 Stock Average decreased 0.9%, and Topix declined more than 1% amid rising bond yields and renewed trade tensions.
Investor sentiment has wavered over the last two weeks after the key benchmark indexes reached new record highs.
The Nikkei 225 Stock Average and the Topix rebounded about 50% from the lows reached on April 7, amid constant U.S. trade policy flip-flops and uncertainty about how tariffs will be collected.
The yield on the 10-year Japanese government bond edged up to 1.63% following comments from Bank of Japan Deputy Governor Ryozo Himino.
Deputy Governor Himino said that the central bank should increase rates gradually amid elevated global risks, highlighting a lack of urgency in aggressive tightening.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 41,933.95, and the broader Topix dropped 1.1% to 3,048.09.
The Japanese yen weakened to 148.67 against the U.S. dollar as the central bank signaled the lack of urgency for aggressive tightening.
SoftBank Group declined 5.3% to ¥14,570.0, Tokyo Electron decreased 1.9% to ¥19,945.0, Advantest Corp. added 0.3% to ¥10,695.0, and Disco Corp.
Mitsui & Company increased 1% to ¥3,580.0, Mitsubishi Corp. decreased 2.2% to ¥3,359.0, Marubeni Corp. fell 1.4% to ¥3,410.0, Sumitomo Corp. declined 1.4% to ¥4,209.0, and Itochu Corp. eased 1.3% to ¥8,472.0.
Japan's Stocks Lacked Direction After BoJ Signaled Gradual Rate-Hike Approach
Akira Ito
03 Sep, 2025
Tokyo
Japan's stock market indexes eased, following losses in overnight trading on Wall Street.
The Nikkei 225 Stock Average decreased 0.9%, and Topix declined more than 1% amid rising bond yields and renewed trade tensions.
Investor sentiment has wavered over the last two weeks after the key benchmark indexes reached new record highs.
The Nikkei 225 Stock Average and the Topix rebounded about 50% from the lows reached on April 7, amid constant U.S. trade policy flip-flops and uncertainty about how tariffs will be collected.
The yield on the 10-year Japanese government bond edged up to 1.63% following comments from Bank of Japan Deputy Governor Ryozo Himino.
Deputy Governor Himino said that the central bank should increase rates gradually amid elevated global risks, highlighting a lack of urgency in aggressive tightening.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 41,933.95, and the broader Topix dropped 1.1% to 3,048.09.
The Japanese yen weakened to 148.67 against the U.S. dollar as the central bank signaled the lack of urgency for aggressive tightening.
SoftBank Group declined 5.3% to ¥14,570.0, Tokyo Electron decreased 1.9% to ¥19,945.0, Advantest Corp. added 0.3% to ¥10,695.0, and Disco Corp.
Mitsui & Company increased 1% to ¥3,580.0, Mitsubishi Corp. decreased 2.2% to ¥3,359.0, Marubeni Corp. fell 1.4% to ¥3,410.0, Sumitomo Corp. declined 1.4% to ¥4,209.0, and Itochu Corp. eased 1.3% to ¥8,472.0.
China Defense Stocks In Focus On Victory Day Parade
Li Chen
03 Sep, 2025
Hong Kong
The stock market rally in China and Hong Kong paused for the second consecutive day amid a lack of new buyers and valuation worries.
The Hang Seng Index decreased 0.5%, and the mainland-focused CSI 300 index dropped nearly 1% as the market rally lost steam after benchmark indexes hovered near multi-year highs.
The CSI 300 index has soared nearly 30% over the last five months, after the monthly exports data showed little impact of the sharp escalation of U.S. tariffs.
Over the last four months, the sustained growth in direct and indirect goods exports to the U.S. eased worries linked to the possible international trade disruption.
The five-month-long market rally got an additional boost as retail investors chased returns and rotated into stocks from fixed-income products.
Market sentiment improved further after better-than-expected interim results from leading technology, industrial, and consumer companies.
Defense-related stocks were in focus as investors reviewed the massive military parade in Beijing to commemorate the 80th anniversary of China's victory over Japan in World War II.
China Indexes and Stocks
The Hang Seng Index decreased 0.5% to 25,375.79, and the mainland-focused CSI 300 index fell 0.9% to 4,451.16.
Zijin Mining Group advanced 1.4% to HK$27.48 following the bullion price reaching a new record high in New York.
Alibaba Group Holding decreased 0.5% to HK$134.10, Tencent Holdings decreased 0.2% to HK$599.50, and Meituan fell 1% to HK$99.95.
China Shipbuilding Group decreased 0.2% to ¥22.40, CSSC Hong Kong Shipping decreased 1.5% to HK$1.86, NORINCO International dropped 1.9% to ¥11.17, and CEC Cyber Security Technology Co. Ltd. fell 2% to ¥17.79.
China Defense Stocks In Focus On Victory Day Parade
Li Chen
03 Sep, 2025
Hong Kong
The stock market rally in China and Hong Kong paused for the second consecutive day amid a lack of new buyers and valuation worries.
The Hang Seng Index decreased 0.5%, and the mainland-focused CSI 300 index dropped nearly 1% as the market rally lost steam after benchmark indexes hovered near multi-year highs.
The CSI 300 index has soared nearly 30% over the last five months, after the monthly exports data showed little impact of the sharp escalation of U.S. tariffs.
Over the last four months, the sustained growth in direct and indirect goods exports to the U.S. eased worries linked to the possible international trade disruption.
The five-month-long market rally got an additional boost as retail investors chased returns and rotated into stocks from fixed-income products.
Market sentiment improved further after better-than-expected interim results from leading technology, industrial, and consumer companies.
Defense-related stocks were in focus as investors reviewed the massive military parade in Beijing to commemorate the 80th anniversary of China's victory over Japan in World War II.
China Indexes and Stocks
The Hang Seng Index decreased 0.5% to 25,375.79, and the mainland-focused CSI 300 index fell 0.9% to 4,451.16.
Zijin Mining Group advanced 1.4% to HK$27.48 following the bullion price reaching a new record high in New York.
Alibaba Group Holding decreased 0.5% to HK$134.10, Tencent Holdings decreased 0.2% to HK$599.50, and Meituan fell 1% to HK$99.95.
China Shipbuilding Group decreased 0.2% to ¥22.40, CSSC Hong Kong Shipping decreased 1.5% to HK$1.86, NORINCO International dropped 1.9% to ¥11.17, and CEC Cyber Security Technology Co. Ltd. fell 2% to ¥17.79.
New Uncertainties About Trade Tariffs Set the Stage for September Sell-Off
Barry Adams
02 Sep, 2025
New York City
Stock market indexes faced a selling pressure after a second U.S. court challenged the legality of sweeping tariffs imposed by the Trump administration.
The latest court ruling adds another twist to the erratic tariff implementation, and the sharp escalation in import duties is expected to increase goods prices and contribute to inflationary forces over the next twelve months.
Investors are worried that the Trump administration's aggressive push to appoint policy committee members that are sympathetic to the Republican Party's agenda could severely undermine policymaking and the Fed's credibility.
Trump's Tariffs Face Legal Headwinds
The U.S. Court of Appeals ruled Trump's tariffs as illegal, citing that only the U.S. Congress has the authority to impose taxes on imports.
The U.S. Court of Appeals for the Federal Circuit, in a 7-4 decision, said that the law invoked by the U.S. president doesn't grant him powers to impose expansive taxes.
For now, the appeals court allowed tariffs to stay till October 14, allowing the Trump administration to seek a verdict from the U.S. Supreme Court.
Trump's tariffs were ruled illegal for the second time, and there are at least two federal cases challenging the U.S. president's use of the International Emergency Economic Powers Act, or IEEPA, to impose a broad range of aggressive tariffs.
Week Ahead
In the week ahead, U.S. investors are awaiting the release of the jobs report and the trade balance report.
The U.S. government agencies are set to release August's nonfarm payrolls, wage growth, jobless rate, and the JOLT report.
Investors are anticipating the jobless rate to increase to 4.3% and wages to advance 0.3% from the previous month, and nonfarm payrolls are expected to increase at a faster pace than in July.
The international trade deficit in July is expected to expand to close to $70 billion, driven by the faster increase in imports than exports.
On the earnings front, Salesforce.com, Figma, GitLab, Broadcom, Dollar Tree, DocuSign, Ciena, RH, Lululemon, Toro, Costco Wholesale, and Children's Place are set to release their quarterly results.
U.S. Stock Movers
Kraft Heinz Co. increased 0.2% to $28.02, and the food products company confirmed its plans to separate into two companies.
The tax-free spinoff is expected to be completed in the second half of next year.
Signet Jewelers Ltd. advanced 6.2% to $93.50 after the specialty retailer's quarterly results surpassed market expectations.
Revenue in the fiscal second quarter ending on August 2 increased 3% to $1.5 billion, driven by a same-store sales increase of 2%.
The price increases drove gross margin expansion by 60 basis points 38.6%
Net loss in the quarter shrank to $9.1 million from $101.5 million, and diluted loss per share eased to 22 cents from $2.28 a year ago.
Signet declared cash dividend of 32 cents per share on November 21 to shareholders on record on October 24.
The company revised the full-year fiscal 2026 sales estimate from the previous range between $6.57 billion and $6.80 billion to a new range between $6.67 billon and $6.82 billion.
Same store sales growth estimate was revised to between a decrease of 0.75% and an increase of 1.75% from the previous estimate between a decline of 2.0% and an increase of 1.50%.
The company guided adjusted annual diluted earnings per share to a new range between $8.04 and $9.57 from the previous range between $7.70 and $9.38.
New Uncertainties About Trade Tariffs Set the Stage for September Sell-ff
Barry Adams
02 Sep, 2025
New York City
Stock market indexes faced a selling pressure after a second U.S. court challenged the legality of sweeping tariffs imposed by the Trump administration.
The latest court ruling adds another twist to the erratic tariff implementation that are expected to increase goods prices and contribute to inflationary forces over the next twelve months.
Trump's Tariffs Face Legal Headwinds
The U.S. Court of Appeals ruled Trump's tariffs as illegal, citing that only the U.S. Congress has the authority to impose taxes on imports.
The U.S. Court of Appeals for the Federal Circuit, in a 7-4 decision, said that the law invoked by the U.S. president doesn't grant him powers to impose expansive taxes.
For now, the appeals court allowed tariffs to stay till October 14, allowing the Trump administration to seek a verdict from the U.S. Supreme Court.
Trump's tariffs were ruled illegal for the second time, and there are at least two federal cases challenging the U.S. president's use of the International Emergency Economic Powers Act, or IEEPA, to impose a broad range of aggressive tariffs.
Week Ahead
In the week ahead, U.S. investors are awaiting the release of the jobs report and the trade balance report.
The U.S. government agencies are set to release August's nonfarm payrolls, wage growth, jobless rate, and the JOLT report.
Investors are anticipating the jobless rate to increase to 4.3% and wages to advance 0.3% from the previous month, and nonfarm payrolls are expected to increase at a faster pace than in July.
The international trade deficit in July is expected to expand to close to $70 billion, driven by the faster increase in imports than exports.
On the earnings front, Salesforce.com, Figma, GitLab, Broadcom, Dollar Tree, DocuSign, Ciena, RH, Lululemon, Toro, Costco Wholesale, and Children's Place are set to release their quarterly results.
U.S. Stock Movers
Kraft Heinz Co. increased 0.2% to $28.02, and the food products company confirmed its plans to separate into two companies.
The tax-free spinoff is expected to be completed in the second half of next year.
Signet Jewelers Ltd. advanced 6.2% to $93.50 after the specialty retailer's quarterly results surpassed market expectations.
Revenue in the fiscal second quarter ending on August 2 increased 3% to $1.5 billion, driven by a same-store sales increase of 2%.
The price increases drove gross margin expansion by 60 basis points 38.6%
Net loss in the quarter shrank to $9.1 million from $101.5 million, and diluted loss per share eased to 22 cents from $2.28 a year ago.
Signet declared cash dividend of 32 cents per share on November 21 to shareholders on record on October 24.
The company revised the full-year fiscal 2026 sales estimate from the previous range between $6.57 billion and $6.80 billion to a new range between $6.67 billon and $6.82 billion.
Same store sales growth estimate was revised to between a decrease of 0.75% and an increase of 1.75% from the previous estimate between a decline of 2.0% and an increase of 1.50%.
The company guided adjusted annual diluted earnings per share to a new range between $8.04 and $9.57 from the previous range between $7.70 and $9.38.
Japan's Indexes Rebounded Ahead of Wage Data, Gold Reached New Record High
Akira Ito
02 Sep, 2025
Tokyo
Stock market indexes in Tokyo advanced after falling in two previous consecutive sessions.
The Nikkei 225 Stock Average inched higher 0.3%, and the Topix gained 0.6%, as investors looked forward to the release of wage data later in the week.
Large corporations have increased wages for the second year in a row at a record high of 5%, putting additional pressure on smaller companies to match wage increases.
However, most small- and mid-sized corporations have kept wage gains closer to the 2% to 3% range, amid a weak outlook for profit growth.
The Japanese yen's weakness has been a double-edged sword; while the weaker yen helps exports, it also drives higher costs of imports, including energy and raw material prices.
Investors worried that the latest U.S. court ruling could add another layer of uncertainty for Japan's direct exports and indirect exports through the ASEAN region, China, and Mexico to the U.S.
In commodities trading, gold and crude oil advanced as investors confronted ongoing geopolitical uncertainties and future rate paths in the U.S.
Crude oil jumped 27 cents amid growing worries that the ongoing Russia-Ukraine conflict could further disrupt oil supplies.
Gold jumped 0.5% to $3,495.26 as investors speculate that the U.S. Federal Reserve is more likely to cut rates at the end of a two-day meeting on September 17.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.3% to 42,300.50, and Topix advanced 0.6% to 3,082.41.
Toyota Motor Corp. rose 0.3% to ¥2,866.50, Honda Motor Corp. advanced 0.06% to ¥1,670.0, and Nissan Motor inched lower 0.5% to ¥333.70.
Seven & I Holdings Co. Ltd. advanced 0.4% to ¥1,937.0, Fast Retailing gained 0.5% to ¥46,420.0, Takashimaya Co. Ltd. jumped 3% to ¥1,372.0, and Aeon Co. Ltd. decreased 1% to ¥1,772.0.
Nippon Yusen KK rose 2.9% to ¥5,510.0, Mitsui O.S.K. Lines added 1.8% to ¥4,814.0, and Kawasaki Kisen Kaisha Ltd. increased 2.3% to ¥2,324.50.