Daily Summary: Summer Is Over. Markets Shift Into Risk-Off Mode

📈 Stock Market

• The first Wall Street session in September cannot be considered successful, and most of the key US indices are currently in the red.

• The flagship S&P 500 is losing around 0.7%, the Dow Jones is down by 0.8%, and the tech-heavy Nasdaq is performing worst, falling by nearly 1%.

• Sell-offs in technology and semiconductor stocks are noticeable, although they are not drastic in nature.

• Among technology companies, Amazon and Microsoft are losing 2% and 1.2%, respectively.

• Micron is also under pressure following reports of a potential worker strike in Taiwan.

• Semiconductor companies are also underperforming, with Nvidia losing around 1%, while AMD is down by about 3%.

• On the opposite end is Apple, whose shares are gaining more than 2.5%.

• Red also dominated the Old Continent, with practically all major European indices closing the session in negative territory.

• The British FTSE 100 and the French CAC 40 declined by around 0.3%.

• The German DAX and the Spanish IBEX 35 fared worse, falling by 1.1% and 0.8%, respectively.

📊 Macroeconomics

• In August, US factory activity continued to expand, but at a slower pace than in July.

• The ISM index fell from 55.6 to 54.6 points, whereas analysts had expected a reading of 55.3 points.

• Despite the slowdown, a reading above 50 points indicates that the industrial sector is still expanding.

• At the same time, new orders grew for the eighth consecutive month, suggesting that demand remains relatively strong.

• In July, the number of open job positions in the US rose to 7.27 million from 7.18 million in June, but the result was distinctly lower than the expected 7.36 million.

• This indicates that the labor market remains strong but is gradually cooling, and companies' demand for workers is not growing as fast as previously assumed.

🌍 Geopolitics

• Escalation in the US–Iran conflict is intensifying once again.

• On Tuesday, the United States conducted another series of strikes on targets belonging to the Islamic Revolutionary Guard Corps (IRGC), primarily in connection with attempts to attack commercial shipping in the Strait of Hormuz area and US forces in the region.

• This marks another chapter in the conflict following Sunday's US strike on Iranian missile launchers on Larak Island, where according to the US, preparations were also being made to deploy naval mines.

• In response, Iran fired eight missiles toward a US base in Jordan, which were intercepted.

• Donald Trump confirmed that the latest US strikes are retaliation for Iranian actions and warned that if Tehran responds to current attacks, the US will strike again "at a much larger level."

• Iran, in turn, promises further responses to US actions, though the Iranian president is also signaling readiness to return to a previous ceasefire agreement if the United States fulfills its obligations.

• For the financial markets, the Strait of Hormuz remains key.

🛢️ Commodities

• Following the recent attacks, the price of Brent crude has already risen above $90 per barrel.

• The latest reports of further US strikes and vessel disruptions in the region are once again increasing the risk of further oil price hikes.

• Precious metals are under significant pressure today, giving back part of the gains made in August.

• Gold is losing nearly 2.5%, falling below $4,350 per ounce.

• Silver is declining by nearly 3%, dropping below $65 per ounce.

💱 Currencies

• The US Dollar is strengthening against most major currencies.

• It is clearly supported by rising geopolitical uncertainty surrounding the US–Iran conflict, which increases demand for the dollar as a safe-haven asset.

• Additional support comes from rising oil prices and inflation concerns, which may limit the scope for Fed interest rate cuts and support US bond yields.

₿ Crypto Assets

• Deteriorating sentiment is also visible in the crypto asset market, where major cryptocurrencies are giving back part of last month's gains.

• Bitcoin, like Ethereum, is losing around 1.9%.

• Bitcoin is hovering around $77,000, while Ethereum is trading near $2,430.