Chartstopper: September 4, 2026 | Nasdaq

This Week

The 2 large themes this week had been the speed path for the Federal Reserve and the Iran battle.

For the Fed, there have been two notable developments:

1. Fed Governor Chris Waller mentioned he was open to leaving rates unchanged if current disinflation continues, or, as he put IT, “to paraphrase John Lennon… give disinflation an opportunity.”
2. The economic system Jobs/august-Jobs-report-unemployment-c9da2f0c?mod=hp_lead_pos1″ goal=”_blank” data-outlook-id=”e304e6f4-9d8c-4633-94b7-4a900fdec118″ data-ogsc=”rgb(70, 120, 134)” title=”https://www.wsj.com/economic system/Jobs/august-Jobs-report-unemployment-c9da2f0c?mod=hp_lead_pos1″>added 162,000 Jobs in August, supporting Chair Kevin Warsh’s view final Friday that inflation is the Fed’s focus. That job acquire was almost triple expectations for 55,000 Jobs added, and the earlier two months had been revised up, flipping July’s job turn into optimistic territory. So, within the final week, market expectations for Fed hikes this 12 months have elevated to almost 40 foundation factors (bp) from below 30bp.

After all, the Iran battle isn’t doing the Fed any favors on the inflation entrance.

Within the final week, U.S. oil costs are up over $5 to maneuver again above $90 per barrel – close to three-month highs. That’s as a result of hopes for any sort of near-term ceasefire appear more and more distant after the U.S. and Iran continued to exchange strikes and extra oil tankers were attacked within the Strait of Hormuz. There have been additionally stories that the Trump administration would not accept a return to the expired Memorandum of Understanding and would require an settlement masking each the Strait of Hormuz and Iran’s nuclear program.

Elsewhere, second-quarter earnings season wrapped up with mega-cap AVGO beating earnings estimates with almost 100% each year (p.a.) progress, serving to the Nasdaq-100® end the quarter with virtually 80% p.a. earnings progress.

Regardless of the (very) robust earnings progress, considerations about inflation and charge hikes weighed on markets with the Nasdaq-100® ending the week flat, whereas 10-year Treasury yields are up about 5bp to 4.8%.