Stock Market Live September 2: S&P 500 (VOO) Falls on New Tariffs Turmoil
Key Points
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A U.S. appeals court declared most new Trump tariffs unconsitutional on Friday.
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Treasury yields are rising on worries that without the tariff revenue, US debt will rise.
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Tuesday Wrap-up
The Vanguard S&P 500 ETF closed at 588.63 Tuesday, down 0.75%.
Lambasting Lam Research
Morgan Stanley analyst Shane Brett downgraded Lam Research (Nasdaq: LRCX) to underweight with a $92 price target yesterday.
“After two very strong years,” growth is slowing, says Brett, and “end-markets just aren’t robust enough to drive further growth for LAM and NAND WFE. We expect growth to decelerate from 82% in 2025 to 3% in 2026.”
Investors aren’t liking the sound of that one bit: Lam stock is down more than 3%, but the Voo’s loss has been cut to 0.9%.
Corning Glows Brighter
UBS analyst Joshua Spector upgraded Corning (NYSE: GLW) stock to buy with an $84 price target this morning.
“We see ongoing AI-driven fiber growth continuing to exceed market expectations, driving sustainable higher growth and re-rating in the stock,” said Spector. “We expect Optical to deliver a ~27% sales CAGR through 2027 … driving much of our ~13% GLW sales CAGR over this period … and we now see a sustainable ~20% CAGR through 2029.”
Corning stock is up 1.6%.
Nio Not as Unprofitable as Feared
In international earnings news, Chinese electric car company Nio (NYSE: NIO) beat Q2 “earnings” forecasts with a RMB1.85 per share loss this morning. (Analysts had expected the company to lose RMB2.25).
Revenue was worse than expected at only RMB19 billion. On the plus side, Nio forecasts strong double digit revenue growth in Q3, to RMB21.8 billion or even RMB22.9 billion.
Nio stock is nevertheless down about 0.2% in the first few minutes of trading today. And the Voo is still off 1.2%.
This article will be updated throughout the day, so check back often for more daily updates.
A surprisingly optimistic report from the Congressional Budget Office last month predicted that at the rate things are going, new tariffs announced by the Trump Administration could lower the U.S. Budget deficit by some $4 trillion over the next 10 years — but now that prediction is at risk. On Friday, a federal appeals court ruled many of the President’s recently announced tariffs unconstitutional, raising the prospect that monies raised from the levies will have to be refunded, and will not in fact reduce the deficit at all.
With this income stream now threatened, yields on US Treasury bonds are rising, with the 30-year Treasury bill approaching 5% today. And as bond yields rise, stock markets fall. The Vanguard S&P 500 ETF (NYSEMKT: VOO) is currently down 1.2% premarket.
Earnings
Academy Sports and Outdoor (Nasdaq: ASO) reports a $1.94 per share fiscal Q2 2026 profit this morning, $0.22 less than expected. Revenue is right in line with expectations at $1.6 billion.
On the plus side, guidance is ahead of expectations, with the sporting goods store saying fiscal 2026 earnings should range from $5.60 to $6.30 per share, and revenue will exceed $6 billion. Nevertheless, the stock is still down 4.5% premarket.
Signet Jewelers (NYSE: SIG) beat expectations soundly with a $1.61 per share profit and sales of $1.5 billion for its Q2. Signet’s Q3 revenue forecast looks sound at $1.34 billion or more in revenue, as does its full year forecast form $6.7 billion or $6.8 billion in revenue. Earnings for this fiscal year 2026 on the other hand look iffy. Management says profits per share could range from as low as $8.04 to as high as $9.57 — a very wide range.
Even so, Signet stock is up 3% premarket.
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