Cloud names swept the top of the leaderboard, Snowflake in front

Today's Market

Snowflake (SNOW) +16.6% led all gainers after results on the 2nd that beat estimates and came with raised guidance. The S&P 500 +1.1%, Nasdaq +1.4% and Dow +1.2% all closed higher on the 3rd, and the VIX fell 5.8% to 14.32.

• The top five gainers were all software and cloud names, with Palantir (PLTR) +7.7% in second place and Tesla (TSLA) +5.4% the first non-software name, in sixth

• Broadcom (AVGO), which reported on the 2nd, fell 2.7% as its revenue forecast came in below estimates, against Microsoft (MSFT) +2.7% the same day on its move to break out Azure revenue

• Eight of eleven sectors rose, Financials +1.6% on top rather than Technology +1.3%, while Energy −0.7% was the weakest of the eleven even with crude up 0.7%

• The index is up 13.0% year to date and the Fear & Greed Index sits at 35, inside Fear; the US jobs report (NFP) on the 4th is next, with Oracle earnings and the PPI on the 10th

Market Data

S&P 500

7,747.71

▲1.06%

NASDAQ

26,584.06

▲1.40%

DOW

53,686.11

▲1.18%

VIX

14.32

▼5.79%

Fear & Greed 35 1W -20 · 1M -16 · S&P CAPE 41.2 (10y +2.2σ)

Sector Heat Map

SPY benchmark + 11 GICS sectors · 1-day

S&P 500 SPY +1.05%	Technology XLK +1.29%	Comm. Svcs XLC +0.85%	Cons. Discr. XLY +1.39%
Cons. Staples XLP −0.32%	Energy XLE −0.74%	Financials XLF +1.56%	Health Care XLV +0.18%
Industrials XLI +1.03%	Materials XLB −0.62%	Real Estate XLRE +1.19%	Utilities XLU +0.84%

Today's Focus

The software move outran the single earnings report

A bid that started with Snowflake and spread across the cloud names

• ServiceNow (NOW) +6.5% was joined by Oracle (ORCL) and CrowdStrike (CRWD), both +5.7%

• On top of that, Palantir turned around in a single day after falling on the 2nd on news that Google is entering the defense AI market

• Nvidia's acquisition of AI platform Hugging Face added to it, and Jefferies' Brent Thill argued AI and software can "live together in harmony"

• Oracle (ORCL) earnings on the 10th are the test of whether cloud demand holds

Waller's support for a hold turned yields lower

The inflation fears that dominated the bond market a day earlier eased at the short and intermediate end, the macro backdrop to the Nasdaq's advance

• Fed Governor Waller said he could support holding rates and pleaded to "give disinflation a chance"; Treasury yields fell right after

• The 10-year eased to 4.8% and the 3-month to 3.7%, while the 30-year held at 5.2%; the dollar index slipped 0.6% to 99.00

• Vice President Vance added to the policy pressure by calling for rate cuts

Next Week

ALL TIMES EASTERN (ET)

• Thu 9/10 Producer Price Index (PPI)

• Thu 9/10 Jobless Claims

• Thu 9/10 ORCL earnings, after the close | EPS est. $1.74

For informational purposes only. Not investment advice. All investment decisions are your own responsibility.

To unsubscribe, click here.