Market Musings 9/2/2026
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
What’s driving stock markets in September?
August was a wild ride for stocks－a tech rebound led the charge, but reescalating Middle East tension kept a tight leash on the rally. The S&P 500 ends up 2.6% for the month.
Let’s recap August…
August started with a bang as #BigTech bounced back after July’s brutal sell off. Investors rushed back into the #AI trade driving semiconductor and software names higher.
But energy shock crashed the party… Early hopes that the Strait of Hormuz would stay open faded fast as the US and Iran reignited their #GlobalTension spat. Crude oil spiked right back up along with gas reigniting fears for global supply chains and #Inflation.
As we move into September, what are we focused on?
First, US and Iran #GlobalTension. The bickering seems to be at an impasse. Oil has been steadily rising, but still hasn’t really fed through into #Inflation. Investors appear to be holding back through expecting the White House to back off. We’ll see if that gamble pays off.
Second, the Fed and #RateHikes. While not surging, #Inflation still remains stubbornly high. Chair Warsh has signaled the Fed will work to take it down. That has #RateHikes on the rise, but markets are still mixed on how aggressive the Fed will be.
The Fed’s other mandate, #LaborMarkets, remain mixed to semi-stable. However, any signs of softening will make the Fed’s job harder.
In addition, bond markets decided to not wait with yields rising globally…
Finally, #AI. #BigTech is still all-in on #AI compute capacity and that’s keeping #AI buildout names flying high.
However, investors appear skeptical of the more midterm demand. We’ve saw poster child Nvidia soar on anther blowout beat, but then give it all up.
Sustainability of the CapEx spend is the big question. The #AI revenue growth at #BigTech hyperscalers are getting brownie points, but nowhere near the level to pay for all of this.
Expecting a volatile September. Stay tuned for more updates!
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As of the publish date, Ursa portfolios may own NVDA. The stocks mentioned in this article may cease to be owned by Ursa portfolios at any point.
The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.
Original Photo by fauxels.