S&P 500 Sits Near Peak as EasyAlpha Re-Grades S&P 500 Names

On Thursday, September 3, major US equity indexes moved higher, leaving the broader market near record highs. The S&P 500 rose +1.0%, leaving the index -0.6% from its peak, while the SPY fund closed at $773.17. Market breadth was positive across large companies, with 69.4% of top US equities finishing the session higher.

Gains were consistent across large-cap benchmarks. The Nasdaq 100 advanced +1.2%, matching the Dow's gain of +1.2%, while smaller companies saw more modest participation as small caps rose +0.4%.

While New York was shut, EasyAlpha re-graded several S&P 500 companies as part of its daily evaluation run. Our assessment moved higher on three members: Crowdstrike Holdings Inc (CRWD) E to C on its price behaviour, Palantir Technologies Inc. (PLTR) D to B on its price behaviour, and Healthpeak Properties Inc (DOC) D to A on the sentiment around it.

Our judgment moved lower on three other S&P 500 components over the same period: Synopsys Inc (SNPS) C to D on its price behaviour, Lumentum Holdings Inc (LITE) D to E on its price behaviour, and Autodesk Inc (ADSK) C to D on its price behaviour. Across our coverage, companies graded A or B have stronger fundamentals, and historically they have carried a lower risk of large drawdowns than companies graded D or E.

In round-the-clock trading as of 10:05 am New York, precious metals and foreign currencies registered active moves. Among commodities, silver +4.0% and gold +3.3%, while in foreign exchange, the yen against the dollar +1.4% and the euro against the dollar +0.3%.

Looking ahead to Friday, September 4, the corporate calendar opens with 0 covered companies reporting during the upcoming session, while 37 are scheduled to release quarterly results over the next seven days. With the immediate earnings schedule quiet before next week's reports, investors heading into the session have several specific names worth watching across consumer goods, enterprise software, and active market movers.

In the consumer sector, two names warrant close attention following recent corporate updates: Lululemon Athletica Inc. (LULU) and Campbell’s Co (CPB). Lululemon is in focus after reporting second-quarter earnings that surpassed expectations despite a revenue decline. Meanwhile, Campbell's remains active after declaring a quarterly dividend following its recent earnings release.

In enterprise software, Palantir Technologies Inc. (PLTR) enters the session following the improvement in its quality assessment. In the prior session, financial technology and crypto-exposed equities posted standout advances, led by Robinhood Markets Inc (HOOD) +16.6% and Coinbase Global Inc (COIN) +10.1%. Both stocks surged as Bitcoin climbed above $81,000 and bond yields declined following central bank commentary. Robinhood drew further support from favorable analyst commentary on event-contract trading growth, while Coinbase gained on optimism surrounding upcoming digital asset legislation.

On the downside, two sharp pullbacks from the last session remain important heading into the open: Ciena Corp (CIEN) -10.4% and Tyson Foods Inc (TSN) -7.3%. Ciena dropped after issuing fourth-quarter adjusted gross margin guidance of approximately 45%, triggering profit-taking despite beating third-quarter revenue and earnings estimates. Tyson Foods retreated after lowering full-year revenue and operating income forecasts, citing severe domestic cattle supply shortages and compressed beef processing margins.

Why a currency move matters to an investor who only owns US shares comes down to how multinational American corporations generate revenue and convert their profits. Many of the largest companies in the S&P 500 sell products globally, taking in payments in currencies like the euro, the yen, or the pound. When those foreign currencies appreciate against the US dollar, overseas revenue translates into more dollars when reported on corporate earnings statements, providing an immediate lift to financial results. A weaker dollar also makes American exports more price-competitive for international customers, helping sales volume. When the dollar strengthens instead, foreign revenues translate into fewer dollars and American products become more expensive abroad, creating an earnings headwind. Even in a portfolio holding only domestic stocks, currency fluctuations directly shape company profits, profit margins, and long-term valuation.