Markets Face First 2026 Test With Jobs Data, Tariff Verdict 09/01/2026

HOT stories for today

Market wrap:

• U.S. equities closed mixed on Thursday as investors rotated out of technology stocks. The Dow Jones Industrial Average rose about 0.55%, while the Nasdaq Composite fell 0.44%. The S&P 500 hovered near flat, ending up roughly 0.01%. Technology was the weakest of the 11 S&P 500 sectors, sliding more than 1%. Shares of Nvidia fell more than 2% as investors pared exposure to artificial-intelligence leaders. Oracle declined nearly 2%, while Apple dropped for a seventh consecutive session. Defense stocks outperformed after President Donald Trump called for a $1.5 trillion defense budget in 2027, lifting expectations for increased government spending in the sector.
• Rob Haworth, senior investment strategy director at U.S. Bank Asset Management, said technology and artificial intelligence are likely to remain important themes into 2026, but their role as a driver of market gains will depend on whether meaningful use cases emerge and which industries ultimately benefit. Oil prices rebounded sharply, with Brent crude and U.S. West Texas Intermediate futures each settling more than 4% higher. Investors are watching two potential catalysts on Friday. The Supreme Court of the United States may issue a ruling on the legality of President Trump’s tariffs, a decision that could influence trade policy and the fiscal outlook. In addition, the December jobs report is due, with expectations for a modest improvement in labor-market conditions.

Markets Face First 2026 Test With Jobs Data, Tariff Verdict

• Attention will turn to the U.S. Labor Department’s December employment report, the first major data release of 2026, as equity valuations leave little margin for error. The S&P 500 is trading at more than 22 times forward earnings, near levels last seen at the market’s early-2022 peak. Economists surveyed by the Wall Street Journal expect payrolls to rise by 73,000, up from November’s initial 64,000, with the unemployment rate edging down to 4.5%. Tom Essaye of Sevens Report Research said the risks are two-sided: a strong report could damp expectations for interest-rate cuts from the Federal Reserve, while a weak one could revive concerns about growth and stretched valuations.
• A “Goldilocks” outcome of steady hiring and stable unemployment would be most supportive for stocks. Investors are also bracing for a possible Supreme Court ruling on tariffs imposed under President Donald Trump, with Friday designated as an opinion day. Strategists say a decision striking down the levies may already be priced in, though it could weigh on the dollar and reinforce expectations for Fed rate cuts, while a ruling allowing them to stand could lift equities. Market focus would likely fall on retailers such as Walmart and Costco Wholesale, which are among the companies seeking to recover the tariffs they have already paid.

Stocks on the move:

• General Motors (GM): Shares of the Detroit-based automaker fell about 2% in extended trading after the company disclosed in a regulatory filing that it will take $7.1 billion in special charges in the fourth quarter of 2025. The charges are tied to its pullback from electric-vehicle investments and restructuring efforts in China.
• Intel (INTC): The chipmaker’s shares rose 1.7% after President Donald Trump said in a Truth Social post that he had a “great meeting” with Intel Chief Executive Lip-Bu Tan, adding that the U.S. government is “proud to be a shareholder” of the company. The U.S. took a 10% stake in Intel last August, making it the company’s largest shareholder.
• Tilray Brands (TLRY): Shares jumped nearly 8% after the cannabis and consumer packaged goods company reported record net revenue for its fiscal second quarter. Tilray posted revenue of $218 million, beating the $211 million consensus estimate from analysts surveyed by LSEG.
• WD-40 (WDFC): The stock slid 9.6% in after-hours trading after the company reported first-quarter net income of $17.5 million, down 8% from a year earlier. WD-40 reaffirmed its full-year outlook, saying the early-quarter weakness reflected timing issues in its distributor network rather than softer end-user demand, and said it expects a stronger performance later in the year.

Watchlist: INTC, XOM, GM, WDFC, TLRY, NVDA, ORCL, TSLA, META

Key Economic Events Today:

EST time

08:30 am: USD Non-Farm Employment Change
08:30 am: USD Unemployment Rate
08:30 am: USD Building Permits, Housing Starts
10:00 am: USD Consumer Sentiment, Inflation Expectations
01:35 pm: USD FOMC Member Barkin Speaks


Earnings

No major earnings today!



The TEFS Analyst team wishes you a successful day!