Apple's Strong Start Can't Offset Market Worries

On the first trading day of September, Apple's new CEO John Ternus got off to a good start as the company's share price rose by 3%. However, this wasn't enough to lift the major indexes. The Nasdaq Composite index fell by 0.86%, with the Dow Jones Industrial Average and S&P 500 slipping by 0.82% and 0.66% respectively.

Oil prices continued to rise due to the intensifying conflict in Iran, which is fueling inflation concerns. As a result, Treasury yields also increased, reaching their highest level since January 2025 at around 4.8%. This has put pressure on expensive growth stocks, leading to losses for tech giants Microsoft and Alphabet.

The Fed's hawkish stance is also contributing to the market's downward trend. Governor Michael Barr stated that he would support a rate hike if inflation doesn't ease convincingly, following recent remarks from Fed Chair Kevin Warsh at Jackson Hole. Traders now put the odds of a September hike above 65%, up from about a third before Warsh spoke last week.

With the market's focus shifting back to macroeconomic indicators, all eyes are on Friday's August jobs report. Weak numbers could make a rate hike less likely even amid rising inflation.