Stocks Open Near Highs Ahead of Major Technology Earnings

As trading opens on Wednesday, September 2, the market sits -2.1% from its peak. During the prior session on Tuesday, September 1, advancing stocks were in the minority, with only 32.1% of S&P 500 members finishing higher. SPY closed at $761.78 as the S&P 500 fell -0.7%, while the Dow lost -0.7%. The Nasdaq 100 dropped -1.3%, and the Russell 2000 small caps slipped -1.1%.

While New York was shut, EasyAlpha re-evaluated its company assessments across 1000 graded businesses, raising grades on 99 companies and lowering them on 104. Downgrades were heavily concentrated in a single sector, where 42 of the 104 downgrades were in Industrials.

Among the upward revisions, our judgement improved on Affirm Holdings Inc (AFRM) D to C, Ferguson Plc (FERG) E to D on the sentiment around it, and Noble Corporation plc (NE) E to C on the sentiment around it. On the downside, our assessment shifted lower for Cadence Design Systems Inc (CDNS) B to D on its price behaviour, Lumentum Holdings Inc (LITE) B to E on its price behaviour, and Navan, Inc. Class A Common Stock (NAVN) B to D on its price behaviour.

In round-the-clock trading, international benchmarks adjusted while New York was closed. As of 10:45 am New York, trading showed silver -4.6%, gold -3.3%, the yen against the dollar -0.8%, and the pound against the dollar -0.5%.

Corporate earnings are scheduled to drive market attention throughout the session. Today, 22 covered companies report results, marking the start of an active period in which 71 businesses report over the coming seven days. After the close, results are scheduled from several major enterprise and software providers: Broadcom Inc (AVGO, graded C), Snowflake Inc. (SNOW, graded C), Hewlett Packard Enterprise Co (HPE, graded C), NetApp Inc (NTAP, graded C).

Several individual companies warrant close attention before the bell. For Oracle Corporation (ORCL), European antitrust regulators are scrutinizing licensing practices by collecting information from third parties regarding potential competition concerns. In semiconductors, Marvell Technology Group Ltd (MRVL) has experienced downward pressure following its recent earnings release as investors absorbed delayed revenue expectations from its Google custom-chip partnership alongside sector weakness. In freight logistics, Old Dominion Freight Line Inc (ODFL) drew focus after dropping 5.5% amid sector-wide selling across trucking and transport peers.

Standout moves from the previous session also carry context into this morning's open. On the upside, notable advances included Moderna Inc (MRNA) +9.9%, driven by investor enthusiasm for positive late-stage melanoma trial results, and Edison International (EIX) +8.9%, which staged a rebound following a steep decline tied to California wildfire legislation. On the downside, selling hit Axon Enterprise Inc. (AXON) -8.5% amid software gross margin compression and quarterly cost pressures, and Cadence Design Systems Inc (CDNS) -7.6%, though our sources show no reported driver for the drop.

Understanding why overnight foreign exchange movements matter to an investor who holds only domestic shares begins with revenue geography. A large portion of companies in the S&P 500 do not operate solely within the United States. Many generate substantial sales in Europe, Asia, and other international markets. When foreign currencies like the Japanese yen or British pound weaken against the U.S. dollar, overseas revenue converts into fewer dollars when companies consolidate their financial results.

Currency movements also alter product pricing and competitive position in global markets. When the dollar strengthens against major currencies, American products and services become comparatively more expensive for international customers, which can dampen foreign demand. Even when an investor never trades a foreign currency or purchases an international stock, shifts in currency pairs directly influence the reported earnings, profit margins, and global sales volumes of domestic corporations.