Next Day Prep #102: Market Alert Tariffs Shake, Energy Shines – Tuesday 9/2/2025
Key takeaways
- Traders should focus on stocks exhibiting relative strength, monitor key index levels for levels to watch, and remain nimble in navigating through headline risks and market uncertainties.
Next Day Prep: Market Alert Tariffs Shake, Energy Shines
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Welcome to Next Day Prep – What We Are Watching Tomorrow. The market experienced a choppy start to September, ultimately closing in the red. Despite the late-day bounce, uncertainty surrounding tariffs created a legal limbo, reflected in a sharp VIX spike.
Overnight Headlines
Tariff uncertainty led to a risk-off rotation, with real estate, industrials, and tech sectors bearing the brunt while defensive plays like healthcare and consumer staples saw small gains. Energy emerged as the top-performing sector, lifted by a surge in crude oil prices.
Economic Announcements
- VIX: Jumped 14% to over 17.5, indicating heightened fear in the market.
- Crude Oil Price: Climbed 2.5% to over $65 a barrel, supporting the Energy sector.
Earnings Highlights
- NVIDIA (NVDA): Experienced volatility, closing down nearly 2% below a key technical level.
- Kraft Heinz (KHC): Dropped about 7% on news of a corporate split into two separate companies.
Top Movers
- American Express (AXP): Broke out above resistance at $331, poised for a move towards $332.50.
- Travelers (TRV): Showing strength with a potential uptrend breakout above $273.50 targeting $275.
Quick Trade Ideas
Consider continuation plays on AXP and TRV, while setups on Cloudflare (NET) and Salesforce (CRM) are building momentum for potential breakouts.