US EQUITY OPEN: US indices in the red following a strong US jobs report

OPEN: US indices opened broadly in the red, with the Nasdaq 100 flat, following a strong US jobs report as sectors also saw notable downward bias. Technology and Industrials are the only ones in the green, while Energy and Consumer Discretionary are the laggards. The US economy added 162k jobs in August (exp. 55k, prev. 21k). The unemployment rate was unchanged at 4.1%, as expected, while the participation rate lifted to 61.6% from 61.4%; U6 unemployment rate declined to 7.7% from 7.9%. As such, it increased the bets for a Fed rate in September with an implied probability of a 25bps hike now priced with 65% probability (vs 50% pre-release). All in all, it continues to show that the labour market is in good health, and steady, so places paramount importance on next week's inflation report as they will highly likely determine what the Federal Reserve does at its 16th September confab. Elsewhere, and given the aforementioned report, the Dollar saw notable strength to the detriment of G10 FX peers, although the Yen has seen its own bout of strength and is flat vs. the Greenback. Treasuries and spot gold are also lower on the hawkish bets, while the crude complex is edging lower amid no geopolitical escalation or de-escalation.

STOCK SPECIFICS:

• Trade Desk (TTD): Announced organisational realignment plan, including ~15% workforce reduction in Q3.
• Zscaler (ZS): Earnings beat fails to impress.
• Guidewire Software (GWRE): Earnings beat offset by modest FY27 ARR outlook.
• Adobe (ADBE): Announced internal CEO transition.
• Lululemon (LULU): Rev. & guidance missed; SSS declined more than expected.
• Fair Isaac (FICO), Equifax (EFX), TransUnion (TRU): FHFA orders Fannie and Freddie to approve all lenders for VantageScore, while considering a credit-score bi-merge.