Preview of US Stock Market | The three major stock index futures showed mixed results as the significant US non-farm payroll report for August is set to be released tonight.

Pre-Market Market Trends 1. As of September 4th (Friday), U.S. stock index futures showed mixed results ahead of the market open. The Dow futures were down 0.09%, the S&P 500 futures were up 0.04%, and the Nasdaq futures were up 0.45%. 2. As of the time of this report, the German DAX index was up 0.27%, the UK FTSE 100 index was down 0.05%, the French CAC 40 index was down 0.15%, and the Euro Stoxx 50 index was up 0.07%. 3. As of the time of this report, WTI crude oil was down 0.62% at $90.73 per barrel. Brent crude was down 0.37% at $95.17 per barrel. Market News U.S. Non-Farm Payrolls Set to Be Unveiled Tonight: From "Market Savior" to Backdrop? The Federal Reserve's interest rate hike focus has shifted towards CPI. U.S. non-farm employment data for August is set to be released on Friday evening Beijing time. If the new non-farm jobs are close to the market expectation of 53,000 to 56,000 and the unemployment rate remains at 4.1%, even if hiring is weak, it will only continue the low hiring, low layoffs stable pattern, allowing the Fed to focus on inflation. Conversely, if employment shows negative growth and the unemployment rate rises to 4.2% or higher, the market may significantly reduce interest rate hike pricing. On the other hand, strong non-farm data could indicate the economy can handle rate hikes, but it won't alone force the Fed to act, as inflation trends remain the policy anchor the Fed prioritizes. Therefore, the significance of the employment data lies in examining whether the labor market is weak enough to exercise a veto on rate hikes. "Dr. Doom" Uncharacteristically Optimistic! Nouriel Roubini: AI Prosperity Driving Yield Increases is a Signal of Strengthening Growth Rather than a Precursor to a Bond Crisis. As the global bond market experiences its most intense synchronized sell-off in nearly two decades, with bond yields in the U.S., Japan, Europe, and the UK hitting multi-year highs, the pessimistic economist Nouriel Roubini unexpectedly issued an optimistic assessment. Renowned for accurately predicting the 2008 global financial crisis, Roubini stated that the recent rise in yields is not a signal of a fiscal crisis but rather a reflection of the optimism and increased capital expenditures stemming from AI prosperity. He believes the biggest driving factor for real yields increases is capital expenditures, AI, and future technological prosperity. He pointed out that part of the rise in bond yields may actually signify a stronger growth signal"Typically, when risk appetite increases, economic growth tends to be stronger, stock prices rise, and bond yields also increase. AI Venture Capital Goes from Frenzy to Selectivity! A Wave of De-Risking Approaches, Industry Restructuring May Be Imminent. Venture capital experts state that as valuations in certain sectors begin to show signs of being excessively high, investors should shift their focus to the productivity growth of AI companies. For example, Nitendra, founding partner of venture firm Purple Ventures, said: As investors become much stricter about where technology creates real value versus merely repackaging a feature into a business, we may see a major industry restructuring. He anticipates that over the next 6 to 12 months, capital will become significantly more selective. Nitendra noted that while AI has the potential to transform the economy, not every company that mentions AI in its business proposal deserves an extraordinary high valuation. He added: The true winners will be those companies that leverage AI to solve high-cost and extremely complex problems. U.S.-Iran Hostilities Resurge! Supply Shocks Strike the Dual Maritime Chokepoints in the Middle East, Oil Prices Poised for the Largest Weekly Gain Since July. As hostilities between the U.S. and Iran escalate, market concerns about prolonged disruptions to energy routes through the Strait of Hormuz and another crucial energy transport chokepointthe Bab el-Mandeb Straitintensify. The international oil price benchmarkBrent crude futuresis set to post the largest weekly gain since July. An additive risk is forming around these two maritime chokepoints. Persian Gulf energy exports through the Strait of Hormuz remain constrained, while the Bab el-Mandeb Strait threatens alternate routes for Saudi Arabia's western ports through the Red SeaSuez Canal. Disruptions to both could significantly weaken the global energy supply chain's resilience, leading to increases in maritime shipping costs and prices for crude oil, refined oil, and natural gas. Stock-Specific News No Steering Wheel, No Brake Pedals! Tesla, Inc. (TSLA.US) Cybercab Launches Paid Ride Service. Tesla, Inc. has initiated a paid ridership service using its Cybercab, which operates without a steering wheel or brake pedals, in Austin, Texas. Unlike the previous Robotaxi models retaining traditional control devices, these fully autonomous taxis will no longer permit passengers to take direct control of the vehicle. Tesla, Inc. is utilizing a different technical approach compared to Waymo and Amazon.com, Inc.'s Zoox, relying primarily on cameras and vision systems, whereas Waymo and Zoox incorporate radar and Lidar. Following the removal of the steering wheel and brake pedals, Tesla, Inc. must further prove that its visual system can operate reliably under complex road and low visibility conditions. Consumer acceptance also presents a barrier. As the Cybercab launch event unfolds, investors are intently watching whether the Cybercab can rapidly scale from limited operations to wide deployment. For Tesla, Inc. to achieve large-scale promotion of the Cybercab, it is likely to require similar federal automotive safety regulation exemptions, which have not yet been obtained. A New Cybersecurity Winner Emerges in the Age of AI Inference! Zscaler (ZS.US) Competes for Billion-Dollar Market with a 75% Surge in Sales Pipeline. Zscaler's fourth-quarter earnings report reveals revenue of $898.2 million, a 25% year-on-year increase, exceeding market expectations of $877 million; adjusted earnings per share stand at $1.19, above the expected $1.09; and annual recurring revenue (ARR) grew by 25% to $3.771 billion. More importantly, the AI security bookings increased more than 50% quarter-over-quarter, and sales pipeline grew by 75%reflecting strong future order reserves, as the demand for zero-trust access, identity governance, and data loss prevention increases with more frequent model calls for data, applications, and tools. Management expects first-quarter FY2027 revenue of $935 million to $939 million, surpassing the markets expectation of $927 million; adjusted earnings per share is projected between $1.15 and $1.16, exceeding the expected $1.08; the full-year FY2027 guidance is also stronger than market expectations. However, as of the time of this report, Zscaler shares were down nearly 3% in pre-market trading on Friday. UiPath (PATH.US) Q2 Revenue Exceeds Expectations and Raises Full-Year Guidance; Investors Focus on ARR Growth and AI Monetization Pathways. UiPath's second-quarter revenue grew 13% year-on-year to $410.26 million, exceeding market expectations of $397.77 million. The company stated that revenue growth was driven primarily by stable demand and reduced forex headwinds. GAAP operating income was $32 million, marking the fourth consecutive quarter of GAAP profitability; adjusted earnings per share stood at $0.15, in line with market expectations. Annual recurring revenue (ARR) was $1.938 billion, reflecting a 12% increase year-on-year. Net new ARR improved from $31 million in the prior quarter to $37 million. Even though the absolute scale of net new ARR is still modest, management emphasized that this metric is trending upward in a stable manner. UiPath raised its full-year guidance, now projecting revenue between $1.789 billion and $1.794 billion, higher than the previous guidance range of approximately $1.776 billion to $1.781 billion, and above market expectations of approximately $1.78 billion. As of the time of this report, UiPath shares were down over 8% in pre-market trading on Friday. AI-Driven Business Growth Accelerates! DocuSign (DOCU.US) Second Quarter Revenue Grows 9.4% Year-On-Year, Raises Full-Year Performance Guidance. DocuSign, a provider of electronic signature solutions, reported that its second-quarter revenue grew 9.4% year-on-year to $875.7 million, exceeding expectations by $8.54 million; adjusted earnings per share was $1.16, above market expectations of $1.09. The adjusted gross margin was 81.7%, slightly higher than the market expectation of 81.6%; the adjusted operating margin was 31.6%, exceeding the 30% market expectation. For the entire fiscal year, the company raised its revenue guidance to $3.5 billion to $3.51 billion, up from the previous forecast range of $3.49 billion to $3.5 billion. Simultaneously, it raised its adjusted operating margin guidance to 31% to 31.5%, up from the previous guidance of 30.5% to 31%. Performance Misses Expectations + Further Downgrade of Full-Year Guidance, Lululemon (LULU.US) Plummets in Pre-Market Trading. Lululemon's second-quarter revenue fell 4% year-on-year to $2.4 billion, below market expectations of $2.46 billion; same-store sales, adjusting for currency effects, declined 9% and dropped 10% at constant exchange rates, marking the first decline since the pandemic, with market expectations at a 4.28% decrease. Adjusted earnings per share were $2.92 (including $0.86 contributed from tariff refunds and related interests), far exceeding market expectations of $1.82, but lower than $3.10 in the same period last year. Meanwhile, the company reprised its full-year earnings guidance, projecting fiscal year 2026 revenue at $10.35 billion to $10.5 billion, down from the June projections and noticeably below market expectations of $11.03 billion; it anticipates full-year adjusted earnings per share to be between $9.48 to $9.73, also below market expectations of $10.84. The company had already downgraded its full-year guidance in June, indicating that yearly performance outlook has been cut for the second consecutive quarter. As of the time of this report, Lululemon shares fell over 19% in pre-market trading on Friday. Important Economic Data and Event Forecast Beijing Time 20:30 U.S. August Non-Farm Payrolls Adjusted Change (in thousands)