US EQUITY OPEN: Stocks sold after the open as focus remains on US/Iran ahead of ISM Services

OPEN: US indices initially opened with downside bias, although the tech-heavy Nasdaq 100 opened with slight gains, supported by Intel and Marvell surging, albeit now way off highs. However, since the bell US equities have been sold, with RUT (-1.5%) lagging and the Nasdaq 100 paring all gains to reside in the red. Sectors are mixed, with Consumer Staples, Utilities and Energy sitting at the top of the pile, while Financials, Consumer Discretionary, and Technology reside at the bottom. Ahead of US NFP on Friday, ADP for May rose to 122k from 109k, above the expected 110k. Geopolitics once again dominated newsflow overnight and US/Iran flares ignited again, with US-Iran strikes. Although, the crude complex, which is firmer by c. USD 1.50/bbl has come off peaks as Trump said they are working on a deal with Iran, agreed they will not have a nuclear weapon, and could have Iran lift the blockade by US Labor Day (7 Sept). On the trade front, US proposed new tariffs of at least 10% on imports from 60 trading partners following Section 301 investigation. The Dollar gains, with the Kiwi the G10 underperformer. Treasuries and precious metals are lower given the aforementioned risk-off sentiment. Ahead, US ISM Services PMI is at the top of the hour, with the final S&P Global print ticking lower to 50.7 (prev. 51.0, exp. 50.9), with Fed’s Beige Book and Fed’s Logan alongside the closing bell. After-hours earnings from CRWD and AVGO are the highlights.

STOCK SPECIFICS:

• Palo Alto (PANW): Shares gave up gains of c. 10% in extended trading after strong Q report & guidance
• Gitlab (GTLB): Next Q profit view disappointed but raised FY outlook
• Macy’s (M): EPS & profit beat alongside raising FY midpoint guidance
• Medtronic (MDT): Top & bottom line surpassed exp.
• Intel (INTC): Said progress to date could allow it to pull in some FY27 margin targets
• Marvell (MRVL): Continues to surge (+32.5% gains on Tues.) after Nvidia CEO Huang's $1tln Co. comments
• Yum Bands (YUM): Upgraded at MS
• AT&T (T): Downgraded at Oppenheimer
• Swiss Co. Partners Group caps withdrawal from a PE fund due to rising redemption pressure. Of note for Blackstone (BX), KKR (KKR), Blue Owl (OWL).