US stocks wavered on Tuesday as investors digested a revision to US jobs numbers that showed further labor market weakness that could reset expectations for interest-rate cuts.

The Dow Jones Industrial Average (^DJI) climbed 0.1%. The S&P 500 (^GSPC) fell 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) reversed gains to drop 0.2% after stocks rose on Monday to stay in record-high territory.

Labor market data released by the Bureau of Labor Statistics on Tuesday showed the US economy likely added 911,000 fewer jobs than previously thought in the 12-month period through March 2025 — a steeper revision than expected. Economists tracked by Bloomberg had expected the data to show around 680,000 fewer jobs added to the economy in that time frame.

The otherwise regular update took higher economic and political prominence than usual as debate reigns over how the Federal Reserve will react to the data after a slew of indications that the labor market is slowing down. So far, those signs have convinced traders that an interest-rate cut is coming when Fed policymakers meet next week. Now the question has shifted to how large the reduction might be, and whether that will be a boon for stocks.

Reports on inflation crucial to Fed thinking are due later in the week, with the latest reading of the producer price index (PPI) on Wednesday and the consumer price index (CPI) on Thursday. The CPI and PPI readings will shine light on whether rising prices could become a significant stumbling block to deep or sustained rate cuts.

Also in focus is Apple's (AAPL) annual fall event, where the tech giant is expected to showcase devices including the iPhone 17 and iPhone Air, as well as new watches and heart rate-tracking AirPods. Experts question whether the smartphone updates can generate enough consumer interest to drive up sales, especially following a tariff-fueled buying frenzy earlier this year.

Elsewhere on the corporate front, shares of Tourmaline Bio (TRML) and Nebius (NBIS) both jumped over 40% on deal news, with Swiss pharma giant Novartis (NVS, NOVN.SW) and Big Tech Microsoft (MSFT) respectively.

Oracle (ORCL) and GameStop (GME) are set to report earnings after the bell.

The Energy Sector (XLE) led gains in stocks on the S&P 500 (^GSPC) on Tuesday, adding around 1.7%. The sector climbed as oil (CL=F, BZ=F) extended a recent rise following an Israeli strike on Qatar.

Chevron (CVX) climbed 1.5%, and ConocoPhillips (COP) rose 2%. Exxon Mobil (XOM) stock added more than 2% as the company also announced the purchase of a battery factory to further its push into the energy storage market.

Meanwhile, the Materials and Industrial Sectors (XLB, XLI) fell 1.5% and just over 1%, leading losses.

Rate cut bets were in focus but remained steady after data from the US Bureau of Labor Statistics posted a sharper-than-expected revision to jobs data for the 12 months through March 2025.

Traders continued to price in 90% chances of a 25 basis point rate cut from the Federal Reserve at its September meeting and 10% odds of a 50 basis point cut following the release of the BLS data on Tuesday, according to CME Group.

Recent federal economic data has shown deepening cracks in the US labor market, leading to investor certainty that the central bank will reduce interest rates this month but raising fears of a recession.

After last week's August jobs report was far weaker than projected, the rate cut debate has centered on how steep the cuts will be rather than whether they will happen at all.

US nonfarm payrolls for the 12 months ended March 2025 were slashed by 911,000 jobs, according to preliminary revisions released Tuesday by the Bureau of Labor Statistics. Economists had predicted a downward shift of 682,000 jobs for the period, according to analysts tracked by Bloomberg data.

The revisions follow an August payrolls increase of only 22,000 jobs, according to BLS data released Friday, coming in far below economists' consensus estimate of 75,000 jobs added.

That data also showed the economy lost jobs in June for the first time in four and a half years, losing 13,000 jobs compared to prior estimates of 14,000 jobs added.

Last year's release of this same preliminary annual revision fell during the heated final stretch of the presidential campaign — and became an immediate flash point when it showed the US economy created 818,000 fewer jobs than thought.

The August figures released Friday have been interpreted as largely locking in a September rate cut by the Federal Reserve next week, shifting the question away from one of whether the central bank will cut rates to just how big a nearly guaranteed cut will be.

Traders are pricing in a 100% chance of a cut, with 90% odds of a cut of 25 basis points versus 10% odds of a jumbo 50 basis point cut, according to CME data.

US stocks crept higher on Tuesday as investors expected a revision to jobs numbers to show evidence of further weakening in the labor market weakness that could affect expectations for interest rate cuts.

The Dow Jones Industrial Average (^DJI) nudged up less than 0.1%, while the S&P 500 (^GSPC) and the tech-heavy Nasdaq Composite (^IXIC) gained over 0.1%.

Traders are all but certain an interest rate cut is coming at the Fed's meeting next week, and many are hoping that dovishness will boost stocks after a choppy summer.

But some Wall Street strategists are warning that rate cuts may not turn out to be all good news for stocks in the near term.

Yahoo Finance's Allie Canal reports:

Ed Yardeni, president and chief investment strategist of Yardeni Research, warned Monday that easier monetary policy could spark a destabilizing \\"melt-up\\" in US stocks without addressing America's labor supply shortage, strained by President Trump's immigration crackdown and an aging population.

\\"We think that by cutting rates this month, the Fed would be stimulating an economy that doesn't need easier monetary policy,\\" he said. \\"Stimulating an economy that doesn't need stimulation won't create more workers to address the undersupply that's constraining the demand for labor.\\"

Yardeni argued that with productivity improving and the unemployment rate still historically low, extra liquidity risks fueling a speculative rally driven by investor FOMO rather than fundamentals — the kind of rally, he warned, that often ends in a sharp correction.

Yardeni isn't alone in his skepticism. Others see the risks of rate cuts outweighing the potential benefits.

Read more here.

SailPoint (SAIL) shares are getting hammered in premarket, last down about 12% after the identity security company's second quarter earnings release.

I'm not seeing what the Street is seeing: Full-year guidance lifted across the board. I am on the earnings call, and it seems like it's going well — the comments on demand are bullish.

I am live on Yahoo Finance with SailPoint CEO Mark McClain at around 9:45 a.m. ET for more on the results. Tune in here.

Day 1 is in the books for me at the big Goldman Sachs tech and media conference in San Francisco — I'm prepping as we speak for a super-busy Day 2.

A couple of worthwhile takeaways from my convos:

Narrative that AI will crush enterprise software companies such as Salesforce (CRM) is very persistent. It's likely to be an overhang on the sector's stocks still, in the near term. I like what Snowflake (SNOW) CEO Sridhar Ramaswamy told me below on the topic.

Goldman Sachs' software analyst Kash Rangan came in with a few year-end stock calls here, and he is staying bullish on Salesforce. He didn't sound too convinced on CoreWeave (CRWV) in our discussion.

I am more intrigued by Chime (CHYM) after a breakfast meeting with its CFO Matt Newcomb. The fintech needs to do a better job telling its story to investors, and Newcomb says that's what he is focused on at the conference.

Some key live chats on Yahoo Finance coming up today:

Crowdstrike (CRWD) CEO George Kurtz: 10:30 a.m. ET

Pinterest (PINS) CEO Bill Ready: 3:20 p.m. ET

AT&T (T) CEO John Stankey: 4 p.m. ET

OpenAI (OPAI.PVT) CFO Sarah Friar: 4:05 p.m. ET

Tune in here! More convos with Salesforce CEO Marc Benioff, CoreWeave CEO Michael Intrator, and Affirm CEO Max Levchin will be dropping Wednesday morning on Yahoo Finance.

Economic data: NFIB small business optimism

Earnings calendar: Oracle (ORCL), Synopsys (SNPS), Rubrik (RBRK), SailPoint (SAIL), GameStop (GME)

Here are some of the biggest stories you may have missed overnight and early this morning:

Why today's jobs revisions may rip through Wall Street and DC

Apple's iPhone event kicks off today. Here's what to expect.

The Fed still has the power to juice the market

401(k) savers play it safe, even as demand for private assets surges

US, South Korea talks deadlocked over $350B fund

Nebius jumps on $17.4-billion AI computing deal with Microsoft

US small-business optimism climbs but labor quality concerns persist

How does Tesla get to $8.5T value? Robots, robotaxis and hope

Eli Lilly launches platform for AI-enabled drug discovery

Lachlan Murdoch takes control of Fox, WSJ media empire

There's a lot of market noise in the Federal Reserve's quiet period ahead of its policy meeting next week, Yahoo Finance's Hamza Shaban notes in today's Morning Brief.

He reports:

In the media blackout leading up to the central bank's rate-setting decision next week, Chair Powell and his colleagues (and potential future and potential ex-colleagues) are still on everyone's minds.

Investors are still locked in on the play-by-play as they anticipate a decisive end to the wait-and-see mini-era that has defined the Fed's static hold since December.

The lousy jobs numbers from August have likely forced the Fed to step in. But despite the near certainty that a cut is nigh, the Fed — or the potential of the Fed's future action — still has the power to electrify the market, as the focus now moves to whether we'll see a jumbo 50 basis point rate cut or the standard 25.

How many cuts we see and how fast they come has rapidly stepped in to replace the \\"will they, won't they\\" debate.

Read more here.

A revised look at America's jobs landscape over the last year is coming Tuesday morning, with a number that is widely expected to rip through economic and political circles.

Yahoo Finance's Ben Werschkul reports:

The data is backwards-facing and is expected to show about 700,000 fewer jobs were created from March 2024 to March 2025 than previously thought. What economists are set to look for are any clues about the recent deterioration of the US labor market.

Specifically, the question is to what extent a downshift, which has been in evidence this summer, began in earnest earlier than previously known.

The Trump White House is also set to be watching closely. It could use any revisions as further fodder for its critiques of government economic data — and it may also use the results to try and shift blame for the current slowdown towards former President Joe Biden or, of course, Federal Reserve Chair Jerome Powell. ...

This week's release comes as extra attention is focused on the job market after new jobs data for the month of August, released last Friday, offered flashing red signs of a labor market slowdown. The report showed just 22,000 new jobs were added to the economy.

The political focus on jobs has also been in the spotlight more recently after Trump accused, without evidence, the BLS of having \\"phony\\" numbers and then fired the agency's commissioner — citing revisions as a key reason.

Read more here.

Here's a look at some of the top stocks trending in premarket trading:

Nebius Group (NBIS) stock rose 50% before the bell on Tuesday after announcing it had signed a AI deal with Microsoft (MSFT) worth $17.4 billion on Monday.

Fox (FOX) shares fell 4% premarket following the Murdoch family reaching a deal that will see Rupert Murdoch's eldest son Lachlan Murdoch take control of the family media empire that includes Fox News and the Wall Street Journal.

Dell (DELL) shares fell 1% before the bell following the departure of the tech company's CFO, Yvonne McGill.

Tourmaline Bio (TRML) shares soared over 50% in premarket after Novartis (NVS, NOVN.SW) said it is buying the US company in a $1.4 billion deal.

The Swiss pharma giant will pay $48 a share for Tourmaline, with the deal expected to close in the fourth quarter.

Novartis stock slipped slightly on Wall Street and in Switzerland.

Reuters reports:

Tourmaline is focused on developing pacibekitug, a promising targeted therapy with the potential to reduce systemic inflammation, as a treatment option for atherosclerotic cardiovascular disease, Novartis said in a statement.

With the deal, Novartis will acquire a Phase III-ready asset that will complement its existing cardiovascular disease portfolio, it said.

Read more here.

Apple (AAPL) opens the doors to its annual fall event at its Cupertino, Calif., headquarters, where the company is expected to debut its latest iPhone and Apple Watch lineups later Tuesday.

Yahoo Finance's Daniel Howley lays out what to expect at the show:

The biggest news from the show should be Apple's highly anticipated iPhone 17 Air. Think of it as an iPhone that's been dabbling in Ozempic like the rest of us. At 5.5 millimeters thin, it will be far slimmer than the standard iPhone and iPhone Pro. The standard iPhone is 7.8mm thick, while the Pro is 8.3mm.

According to Apple watcher Mark Gurman at Bloomberg, the Air's thinner design could come with some tradeoffs. The phone, for instance, could have just a single wide-angle camera, rather than the dual-camera setup found on the base iPhone or triple-camera setup found on the Pros.

The phone will also reportedly come with a smaller battery, which, unless Apple is able to work some of its software wizardry, could impact battery life. That could make for a hard sell to consumers, who generally want phones with more cameras and larger batteries. ...

According to Apple enthusiast site MacRumors, citing analyst Jeff Pu, the iPhone 17 Pros will get upgraded telephoto lenses along with a redesigned camera bump, making them more distinct from the current iPhone 16 Pros.

Read more here.

Gold (GC=F) reached a new record overnight Monday into early Tuesday morning, buoyed by optimism over a rate cut at the Fed's meeting next week.

Bloomberg reports:

Bullion gained as much as 0.3% to a fresh all-time high of more than $3,647 an ounce, beating the previous peak on Monday. It climbed 2.5% in the previous two sessions after unexpectedly weak US payrolls data on Friday prompted traders to price in three rate cuts this year, including a quarter-point cut at the Fed’s meeting next week. Gold tends to benefit from lower borrowing cost as it doesn’t pay interest.

Whether gold can continue to ride the rate-cut rally could hinge on a benchmark revision of US jobs data due later Tuesday, along with the tone of US producer and consumer inflation figures on Wednesday and Thursday. Market reaction to the auctions of short- and long-term Treasuries will also be watched.

Gold has climbed nearly 40% this year on central bank purchases and rate-cut speculation, along with stronger haven demand due to heightened geopolitical tensions and worries about the impact of President Donald Trump’s tariff regime on the global economy. The US leader’s attacks on the Fed’s independence have also helped extend gold’s three-year long rally.

Read more here.