The Swiss Market Index (SMI) trimmed earlier losses to trade 0.4% lower at 14,271 points by midday, as defensive stocks such as Roche gained ground while energy and financial shares lagged.
Gold prices advanced 0.63% to $4,356.75 per troy ounce, reversing three consecutive days of declines. The rally followed weaker-than-expected US August nonfarm payrolls data, which showed job growth slowed to 142,000 from 89,000 in July. The softer labor market reinforced expectations for Federal Reserve rate cuts, boosting gold’s appeal as a non-yielding asset. The US dollar also weakened against the Swiss franc and euro, further supporting the metal’s advance.
US equity futures showed mixed signals ahead of the cash open. Dow Jones futures were 0.2% higher, while S&P 500 and Nasdaq 100 futures fell 0.3% and 0.6%, respectively. Market sentiment remained cautious amid renewed geopolitical tensions in the Middle East and rising oil prices, which fueled inflation concerns and increased the likelihood of a Fed rate hike in September.
Federal Reserve Governor Kevin Warsh recently signaled that inflation was not declining fast enough, reinforcing expectations for a September rate increase. "The new baseline appears to be that the Fed will ultimately raise rates in September," said Chris Turner, head of FX strategy at ING. Analysts noted that a relatively robust US economy could compel the central bank to act despite labor market softening.
Among individual US stocks, Dell surged 9.2% in premarket trading after reporting strong quarterly results and raising its full-year guidance. The company cited robust demand for AI servers as a key driver, with Bank of America raising its price target to $600 from $500 and maintaining a buy rating. Morgan Stanley’s Erik Woodring highlighted Dell’s operational strength but flagged valuation as a potential risk.
GitLab shares jumped 24% after the software development platform reported second-quarter revenue of $286.3 million, up 21% year-over-year, and raised its full-year outlook. Dollar-based net retention climbed 40% to a record, with management emphasizing the growing role of AI in software development. The company also guided for Q3 revenue of $756–$761 million and adjusted EPS of $1.57–$1.61.
In contrast, Credo Technology slid 10% despite posting a 104% year-over-year revenue increase to $479 million and adjusted EPS growth from $0.52 to $1.20 in the quarter. Profitability pressures weighed on the stock, with GAAP gross margins narrowing to 64.5% from 67.4% and operating margins falling to 25.2% from 27.2%. Operating expenses surged 104% to $188.4 million.
MongoDB shares tumbled 15% in premarket trading despite beating revenue and earnings expectations. The data platform company reported 30% year-over-year revenue growth and raised its full-year targets, but rising costs—particularly for AI infrastructure—drove a 12% increase in operating expenses, overshadowing operational progress.
Palo Alto Networks shares slipped 1.4% in premarket action despite an upbeat annual guidance, though the stock remains nearly double its year-to-date level, suggesting profit-taking after a strong run.
In Switzerland, Roche advanced 1% while Novartis fell 0.4%, reversing their roles from the prior session. Nestlé declined 0.9% despite announcing the sale of its mainstream vitamin business to private equity firm Yellow Wood Partners for $1.0 billion, a move analysts described as closing a "painful chapter of value destruction."
