Market renews its buy-the-dip subscription

Briefing.com Summary:

*AppLovin, Robinhood Markets, and Emcor to be added to the S&P 500.

*Key inflation data to come later in the week: August PPI on Wednesday and August CPI on Thursday.

*The 2-yr note yield has dropped 75 basis points, and the 10-yr note yield has dropped 50 basis points since the start of the year.

The Dow, Nasdaq, and S&P 500 retreated Friday after the relatively weak employment report for August, feeling the weight of modest losses in the mega-cap space. The price action was notable. The indices started the day higher but quickly came under selling pressure. That development, however, was only half the story.

The other half of the story had a happier ending. Small-cap and mid-cap stocks finished Friday higher, and market breadth was positive, with advancers outpacing decliners at the NYSE and Nasdaq by a tidy margin.

Their outperformance stemmed from the drop in interest rates that followed the employment report, as that drop reflected a more pronounced expectation that the Fed will not only cut rates at the September 16-17 FOMC meeting but also at its October and December meetings.

That view could be subject to change with the release this week of the August PPI (Wednesday) and CPI (Thursday) reports, yet that consideration will have to wait. Today is a relatively slow news day, lacking in major market catalysts outside of China’s weaker-than-expected trade report for August and the announcement from OPEC+ that it will be increasing production by 137,000 barrels per day starting in October. That is less than feared, evidenced by the 2.0% increase in WTI crude futures to $63.11/bbl following the news.

There are some stock-specific catalysts:

• AppLovin (APP), Robinhood Markets (HOOD) and Emcor (EME) will replace MarketAxess (MKTX), Caesars Entertainment (CZR), and Enphase Energy (ENPH) in the S&P 500, respectively, prior to the open Sept. 22.
• EchoStar (SATS) has entered into a definitive agreement with SpaceX to sell the company’s AWS-4 and H-block spectrum licenses for approximately $17 billion, consisting of up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock.
• UnitedHealth (UNH) reaffirmed its FY25 EPS guidance ahead of an investor and analyst meeting.

Notwithstanding the lack of catalysts, the equity futures market has renewed its buy-the-dip subscription. Currently, the S&P 500 futures are up 14 points and are trading 0.2% above fair value, the Nasdaq 100 futures are up 82 points and are trading 0.3% above fair value, and the Dow Jones Industrial Average futures are up 84 points and are trading 0.2% above fair value.

Modest gains in the mega-cap space are helping to prop things up, along with the dip in market rates. The 2-yr note yield is down two basis points to 3.47%, leaving it down 75 basis points for the year, and the 10-yr note yield is down two basis points to 4.07%, leaving it down 50 basis points for the year.

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Originally Posted September 8, 2025 – Market renews its buy-the-dip subscription