Markets Slip as Traders Await Services Data 04/03/2026

 


HOT stories for today

Market wrap:

• Major US equity gauges finished Tuesday lower, but well above the session’s worst levels after an early rout moderated into the close. The S&P 500 fell about 0.34%, while the Dow Jones Industrial Average dropped roughly 403 points, or 0.8%, after being down more than 1,200 at one point. The Nasdaq Composite slid 1%.Losses were broad. All 11 S&P 500 sectors ended in the red, led by materials, down 2.7%, and industrials, off nearly 2%. Investors spent the day recalibrating around surging energy costs and what higher oil could mean for growth, inflation and the path of monetary policy. 
• The oil shock intensified after President Donald Trump said the US would provide risk insurance for all maritime trade through the Persian Gulf, an effort aimed at restoring tanker flows through the Strait of Hormuz. Traffic through the chokepoint, the world’s most important route for crude shipments, stalled after an Iranian Revolutionary Guard commander threatened to set ships ablaze if they attempted passage. Brent futures settled up 4.71% and West Texas Intermediate rose 4.68%, both easing from intraday highs. Goldman Sachs warned a prolonged US-Iran conflict could push inflation materially higher. Looking to Wednesday, traders will focus on the ADP private payrolls report, with economists forecasting 48,000 jobs added in February, up from 22,000 in January. Earnings are due from Abercrombie & Fitch, Broadcom and Okta.

VIX Jumps as Stocks Hit 2026 Lows

• Wall Street’s fear gauge spiked Tuesday as US equities slid to their lowest levels of 2026 before staging an afternoon rebound. The Cboe Volatility Index briefly topped 28, its highest intraday reading since Nov. 20, as the S&P 500 and other major benchmarks sold off, then pared losses. Sentiment improved after President Donald Trump said the US Navy would help escort oil tankers through the Strait of Hormuz and that the government would provide insurance for ships, a bid to restart traffic through the critical crude chokepoint after Iranian threats.
• Investors also watched technical stress signals: the VIX futures curve briefly inverted, with front-month contracts trading above the next month, a pattern some strategists associate with market bottoms. Nicholas Colas of DataTrek said a VIX close at or above 27.5 has historically been followed by higher stock prices a year later more than 70% of the time. Volatility pressures weren’t confined to stocks. Bond-market turbulence also picked up, with the ICE BofA MOVE Index near 73, its highest level since late last year.

Stocks on the move:

• AeroVironment (AVAV): Shares rose 9% after the drone maker said it remains in discussions with the US Space Force over the SCAR program contract. Talks were previously paused to revise terms aimed at accelerating delivery, and the company said it’s expanding its Albuquerque, New Mexico, site to support growth in its space and directed-energy platforms.
• Pinterest (PINS): The stock jumped more than 7% after activist Elliott Management said it will invest $1 billion, aiming to accelerate Pinterest’s share repurchase program.
• AutoZone (AZO): Shares fell more than 5% following a weak fiscal second-quarter report. The retailer pointed to winter storms that disrupted operations, alongside tariff-related price pressures.
• NRG Energy (NRG): The independent power producer slid about 8% after selling shareholder LS Power unloaded 14.3 million shares at $164 each. NRG said it will not receive proceeds from the transaction.

Watchlist: XOM, CRWD, ROST, ANF, COIN, LNG, AAPL, NVDA, SLV

Key Economic Events Today:

EST time

08:15 am: USD ADP Non-Farm Employment Change
09:45 am: USD Final Services PMI
10:00 am: USD ISM Services PMI
10:30 am: USD Crude Oil Inventories
02:00 pm: USD Beige Book



Earnings

BMO (Before Market Open): Dycom Industries Inc., Nexgen Energy (NXE), Bath and Body Works (BBWI)

AMC (After Market Close): Broadcom (AVGO, Rigetti (RGTI), Okta Inc. (OKTA)


The TEFS Analyst team wishes you a successful day!