Friday's jobs report print was perceived as bullish for markets during early trading. Ultimately the fade into the close going into Labor Day weekend continued during the shortened trading week. This morning we received a stronger-than-expected report on the US service industry, causing a move lower in stocks and higher in bond yields. This is on bolstered speculation that the Federal Reserve will keep rates higher for longer.

We will get additional insight into what direction the Fed is heading as many presidents are speaking tomorrow and Friday. Most will likely reiterate that they are looking at incoming data and that further tightening could be justified. While demand is moderating, it still is outpacing supply frustrating the Fed's 2% inflation target.

Newton scores show improvement on broad equity markets from lower levels. Bonds are still poor as interest rates continue their climb higher. Beneath the surface, Energy is the strongest sector according to Newton as oil hit its highest level since November. Traders are now digesting the decision by OPEC+ leaders Russia and Saudi Arabia to extend supply cuts through the end of the year.