Morning Bid: Labor days

• U.S. Treasury yields retreated from multi-year highs as President Trump signaled intention to limit attacks on Iran ahead of November midterm elections
• Japan's yen surged on speculation the Bank of Japan may raise rates by more than the typical quarter-point this month
• Broadcom forecast strong AI chip sales for the next two years but its stock fell after hours due to disappointing fourth-quarter outlook

Market Summary: Morning Bid – September 3, 2026

Market Overview:

Global markets stabilized over the past 24 hours as oil prices steadied and bond market volatility eased. U.S. Treasury yields retreated from multi-year highs, though European markets remain tense due to natural gas prices surging to three-year highs ahead of winter.

Geopolitical Developments:

While no resolution emerged in the U.S.-Iran Gulf standoff, President Trump signaled intentions to limit the duration of recent attacks, with top aides reportedly concerned about the conflict's impact on November midterm elections.

Asia-Pacific Markets:

Asian equities closed higher Wednesday. Japan's yen experienced significant movement amid speculation of Bank of Japan intervention, though traders increasingly anticipate at least a 25-basis-point rate hike this month, with some betting on a larger-than-typical increase.

U.S. Labor Market:

Market focus shifts to U.S. employment data, with ADP's August private sector payrolls report preceding Friday's nationwide jobs report. Key data releases today include weekly jobless claims, July trade balance (8:30 a.m. EDT), and ISM non-manufacturing PMI (10 a.m. EDT).

Corporate News:

Broadcom delivered mixed results Wednesday. While forecasting strong AI chip sales over the next two years—providing evidence of sustained Big Tech infrastructure spending—its fourth-quarter outlook disappointed investors, sending shares lower in after-hours trading.

Fed Speakers:

Multiple Federal Reserve officials scheduled to speak today, including Christopher Waller, Cleveland Fed's Beth Hammack, and Chicago Fed's Austan Goolsbee.

Market Implications:

The combination of cooling geopolitical tensions, stabilizing energy markets, and upcoming labor data suggests cautious optimism, though European energy concerns and mixed corporate guidance warrant continued monitoring.