Stock Market Update

The S&P 500 futures currently trade 23 points below fair value. 

Asian markets finished mostly lower on Monday, with renewed pressure on technology shares adding to a cautious backdrop following the Trump-Xi summit. Japan's Nikkei 225 fell 0.7%, snapping a five-session winning streak, with Kioxia (-4.4%), Ibiden (-4.4%), and Lasertec (-2.2%) leading technology losses ahead of Micron's earnings later this week. China's Shanghai Composite dropped 1.7% to a nearly two-month low. In comparison, the Shenzhen Component plunged 3.4% after the Trump-Xi summit produced limited progress beyond tariff reductions and an extension of the trade truce through January. Technology shares led the mainland selloff, with GigaDevice Semiconductor (-6.6%), Cambricon Technologies (-6.6%), Eoptolink Technology (-4.5%), and Zhongji Innolight (-4.4%) sharply lower. Hong Kong's Hang Seng Index bucked the regional weakness with a 0.5% gain, snapping a three-session losing streak, with China Resources Land (+2.9%), Wuxi Biologics (+0.8%), Tencent (+0.7%), and AIA (+0.4%) advancing. China also reported industrial profits increased 15.7% year-over-year through August, slowing from the 17.6% pace recorded through July.

• In economic data:
  • China's August industrial profits increased 15.7% year-to-date (prior 17.6%).
  • Japan's Corporate Services Price Index increased 3.7% (expected 3.6%; prior 3.6%).
  • India's August industrial production increased 8.0% (expected 6.5%; prior 6.7%).

European markets trade modestly higher on Monday, showing some resilience despite the renewed Middle East tensions, expressed through higher oil prices, and broader pressure on technology shares. Germany's DAX is up 0.4% with Siemens Healthineers (+3.0%), Fresenius (+1.5%), and Fresenius Medical Care (+1.3%) advancing, while Infineon Technologies, Siemens Energy, and Hochtief fall between 1% and 2%. France's CAC 40 rises 0.6%, supported by EssilorLuxottica (+2.7%), Hermès (+1.9%), L'Oréal (+1.8%), and Sanofi (+1.1%), while TotalEnergies (+0.7%) gains after outlining plans for dividend growth of more than 5% annually through 2030 and expanding its share-buyback program. London's FTSE 100 advances 0.4%, with Barratt Redrow surging nearly 15%, Howden Joinery (+5.1%), and Kingfisher (+4.2%) rallying on expectations for a revival of the UK's Help to Buy scheme. Higher crude prices provide additional support to Shell and BP, each up around 1%, while Fresnillo, Endeavour, Antofagasta, Anglo American, Glencore, and Rio Tinto decline between 1.8% and 5.5%. The geopolitical backdrop remains unsettled after the latest US-Iran truce attempt failed to gain traction, with President Trump rejecting Iran's proposal, although indirect talks are expected to resume this week.

• In economic data:
  • There was no economic data of note.