Squawk on the Street SOTS 2nd Hour: The September Set-up, Healthcare & Energy Playbooks, Plus: Pepsico/Kraft Heinz - Exclusive Comments 9/2/25
Sep 2, 2025
As the market faced a downturn on the first trading day of September, experts analyzed the implications of interest rates on inflation and consumer behavior. Warren Buffett expressed disappointment over Kraft Heinz's split decision, highlighting potential market impacts. The complexities of the oil market and PepsiCo's engagement with an activist investor added to the discussion. Political dynamics surrounding healthcare policies also made waves, reflecting on how they could reshape the insurance sector amid ongoing regulatory scrutiny.
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September Market Pullback And Bond Move
- Markets opened lower on the first trading day of September with the S&P down nearly 1% and tech leading declines.
- Treasury yields ticked higher across the curve, signaling modest selling pressure in bonds.
ISM Shows Cooling Inflation Pressure
- ISM manufacturing for August showed contraction at 48.7 but was the best reading since June.
- Prices paid fell to 63.7, the smallest since February, easing some inflation pressure.
Seasonality, Breadth Depend On Yields
- Paul Hickey noted September is historically weak but a mid-late month pullback often attracts buying.
- Broadening beyond tech depends on 10-year yields staying below about 4.50%.