Stock market recap: Nasdaq, Dow Jones trade lower ahead of inflation data

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Nasdaq, Dow Jones trade lower

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Global indexes

- S&P 500: 6 481,50 (-0,32%)

- Nasdaq Composite: 21 700,388 (-0,03%)

- Dow Jones Industrial Average: 45 400,86 (-0,48%)

- FTSE 100: 9 222,61 (+0,16%)

- Nikkei 225: 43 643,81 (+1,45%) ,

- Hang Seng: 25 633,91 (+0,85%)

- Shanghai Composite: 3 826,841 (+0,38%)

U.S. markets

Stocks eased as investors positioned for the PPI/CPI “double header” after August hiring missed expectations and prior payrolls saw negative revisions. The softer labor tone bolstered rate-cut bets for the Fed’s September meeting, with futures implying meaningful odds of a 50-basis-point move.

Strategists say any further labor-data weakness could pressure short-dated Treasury yields lower. The near-term equity calculus remains a balance between valuation sensitivity to rates and growing concerns that momentum in the real economy is fading.

European markets

European shares inched higher in cautious trade, supported by steadier bond markets but capped by mixed macro signals. Germany’s factory orders fell for a third consecutive month in July, underscoring uneven industrial momentum across the bloc.

Investors are focused on the U.S. inflation prints for direction and monitoring French political risks around a confidence vote, while the FTSE 100 added 0.16% in early dealings.

Asian markets

Asia advanced as the weak U.S. jobs print fueled hopes for U.S. policy easing. Japan led regional gains: the Nikkei 225 climbed 1.45% to 43,643.81 after second-quarter GDP was revised higher on stronger private consumption and inventories.

Political uncertainty following Prime Minister Shigeru Ishiba’s resignation was overshadowed by the prospect of new stimulus. China rebounded from last week’s slump: the Shanghai Composite rose 0.38% and Hong Kong’s Hang Seng added 0.85%, even as August exports (+4.4% y/y) and imports (+1.3% y/y) missed forecasts, highlighting a still-fragile backdrop.

Summary conclusions

Trend: U.S. stocks edged lower ahead of inflation tests; Asia firmed on Fed-cut hopes; Europe steadied.

Macro drivers: Cooling labor data, pivotal PPI/CPI, and the policy path dominate; earnings and valuations remain secondary near term.

What to watch: Whether inflation cools enough to validate a September cut — and if the Fed opts for 25 bps or 50 bps — likely sets the tone for whether indexes retest highs or consolidate into quarter-end.

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