Wall Street began the new trading week and September under pressure as geopolitical tensions, rising bond yields, and major AI and chip developments drove sharp moves across equities and energy markets.
Nvidia announced a $3.5 billion investment in MediaTek through convertible bonds, part of a broader strategy to expand its AI ecosystem beyond GPUs. The deal gives MediaTek customers access to Nvidia’s NVLink Fusion technology and covers AI PCs, automotive systems, and data-center chips.
Oil prices rose more than 2%, with Brent crude moving back above $90 a barrel after U.S. forces struck Iranian targets on Larak Island. Traders focused on the Strait of Hormuz and possible supply disruptions, which could push crude higher and complicate Federal Reserve rate-cut plans.
PG&E fell around 18% on renewed California wildfire liability fears, while GameStop rose despite forecasting quarterly revenue of $780 million to $800 million, down from $972.2 million a year earlier. Investors focused on GameStop's use of cash to repay part of a $1.4 billion debt exchange.
By Tuesday, stock futures weakened as rising bond yields pressured risk assets. Novartis climbed about 4% after its multiple sclerosis drug remibrutinib met Phase III goals, despite a pause in eight CAR-T trials after three patient deaths. Robinhood gained 2.3% after Morgan Stanley upgraded it to Overweight with a $150 price target.
AI and memory-chip names fell in premarket trading: Sandisk dropped 3.2%, while Marvell, Intel, and Corning also declined. NIO slid about 4% ahead of earnings even though August deliveries rose 14.5% year over year to 35,836 vehicles. Markets looked ahead to Broadcom earnings and the August jobs report, with economists expecting around 55,000 jobs added after an unexpected drop in July. A strong number could renew Fed rate-increase expectations, while a weak print could ease pressure.
