• A number of companies say American shoppers are "trading down," looking for cheaper ways to spend while continuing to buy stuff they need and want.
• Lower- and middle-income shoppers appear to be trying the tactic, though some retailers see it among their higher-income shoppers too.
• McKinsey in a June report said many customers trade-down on one item so they can splurge on another.
  

Americans are still shopping. They're just looking for cheaper ways to do it—and trading down is a popular option. 

Many companies and experts say customers are buying items they want or need but picking less-expensive versions than they might otherwise—or "trading down"—in categories from groceries and Glad bags to guns. They're also changing where they shop, going into discount retailers more frequently. And they're testing new brands as they seek to navigate prices pushed higher by trade issues and inflation.

Some companies are seeing the activity more pronounced in lower-income groups than among their wealthier customers. Ross Stores (ROST), a discounter, earlier this month reported trade-down across its customers' income mix. Academy Sports (ASO) in June said more customers with incomes above $100,000 had been shopping at its sporting-goods stores. Closeout retailer Ollie's Bargain Outlet (OLLI) saw higher-income Americans making up a chunk of its new customers in its latest quarter.

"Lower- to middle-income customers continue to prioritize value and are trading down into lower opening price point products," said Kohl's (KSS) interim CEO Michael Bender on a conference call Wednesday, according to a transcript made available by AlphaSense. The retailer has been looking for ways to keep those folks spending, Bender said, including making more brands eligible for coupons. 

While trade-down could be taken as a signal of economic weakness, some observers note that retail spending remains resilient. U.S. July retail-sales numbers grew from June, in line with economists' expectations though slower than last July's advance; one observer characterized the consumer at the time as "down but not out."

Yeti (YETI) executives have reported some trade-down in higher-priced soft coolers. Clorox (CLX) has said the same about its Glad line of bags and storage products. One analyst earlier this month said firearms shoppers have been picking up lower-priced guns. 

Some companies say their customers are sticking to their habits. Dick's Sporting Goods (DKS) executives on Thursday said, "Our consumer across the board is doing so well, and you see that in the fact that we're not seeing trade down from best to better or better to good."

Shoppers have a range of tools they can use to feel better about spending. Energizer in early August said some customers were buying larger packs of batteries, a sign they might be looking to lower their unit costs, while others were going smaller to manage their out-of-pocket cost. (Some companies have also been changing product sizes, though that's sometimes criticized as "shrinkflation.")

Secondhand-store operator Savers Value Village (SVV) in late July discussed "powerful and durable secular trends driving higher adoption of thrift." Some grocers have seen more interest in store-brand goods. 

And sometimes smart spending from one pocket can free up spending from the other. McKinsey in a June report said many customers trade-down on one item so they can splurge on another; nearly a fifth of those it surveyed, the consulting firm said, sought to save on essential stuff so they could spend more on something less vital.

The August jobs report and earnings from companies including Salesforce and Broadcom are among the top events set for a trading week shortened by the Labor Day holiday.

Federal Reserve officials are eyeing the labor market ahead of next month’s meeting, at which investors increasingly expect rate cuts. Broadcom’s earnings are the latest to put focus on the artificial intelligence marketplace, coming after Nvidia’s report last week. Salesforce is also expected to focus on AI offerings.

Stocks rose in August, extending a run of upbeat months, though Friday's session marked a retreat from recent highs. And Friday was notable for a couple of other reasons: a federal appeals court ruling that looks set to hand debate over elements of President Donald Trump's tariff strategy to the Supreme Court, and the delay of a separate ruling on Trump's authority to fire Fed governor Lisa Cook.

Read to the bottom for our calendar of key events—and one more thing. 

Friday’s release of the August employment report comes after prior months’ data revealed that the labor market may be weakening. While employers added jobs in July, revisions to the results from earlier months showed that job creation was weaker than previously reported. The report is the first after the July revisions were followed by the dismissal of the head of the government department issuing the data.

Federal Chair Jerome Powell cited the weakness in the labor market as he opened the door to interest rate cuts at the central bank’s September meeting. Other Federal Reserve officials are scheduled to speak this week, potentially offering more insight into the Fed’s next moves. Last week brought fresh inflation data.

Look for additional labor market data earlier in the holiday-shortened week, while trade balance and factory orders data is also on tap. 

A chipmaker will once again highlight this week’s corporate earnings calendar, coming after last week’s update from Nvidia (NVDA). 

Broadcom’s (AVGO) report on Thursday will highlight the growth of another U.S. chipmaker, coming after it recently posted record quarterly revenue on strong sales of its AI semiconductors. Salesforce’s (CRM) report on Wednesday will also key on AI, as the cloud software giant has raised its sales forecast after making acquisitions to help improve its AI offerings. 

Design software maker Figma’s (FIG) report on Wednesday follows its recent initial public offering where its value soared as investors piled into the Adobe (ADBE) competitor. Another noteworthy report will come Tuesday from Nio (NIO), a Chinese Tesla (TSLA) competitor that recently released a new SUV to challenge the Model Y L.

Quick Links: Recap Last Week’s Trading | Read Investopedia’s Latest News

Monday, Sept. 1

• Stock, bond markets closed for Labor Day holiday

Tuesday, Sept. 2

• Construction spending (July)
• More Data to Watch: ISM manufacturing PMI (August) S&P U.S. manufacturing PMI (August)
• Key Earnings: Zscaler (ZS), NIO, HealthEquity (HQY), Signet Jewelers (SIG), Academy Sports and Outdoors (ASO)

Wednesday, Sept. 3

• Job openings (July)
• Federal Reserve Officials Speaking: St. Louis Fed President Alberto Musalem
• More Data to Watch: Factory orders (July), Federal Reserve Beige Book
• Key Earnings: Salesforce, Figma, Hewlett Packard Enterprises (HPE), Dollar Tree (DLTR), Campbell’s (CPB), C3.ai (AI)

Thursday, Sept. 4

• ADP employment (August)
• Fed Officials Speaking: New York Fed President John Williams, Chicago Fed President Austan Goolsbee
• More Data to Watch: Initial jobless claims (Week ending Aug. 30), U.S. productivity (Q2), U.S. trade deficit (July), S&P final U.S. services PMI (August), ISM services PMI (August)
• Key Earnings: Broadcom, Lululemon (LULU), Samsara (IOT), Guidewire Software (GWRE), DocuSign (DOCU), Ciena (CIEN), ServiceTitan (TTAN), Toro (TTC)

Friday, Sept. 5

• U.S. employment report (August)
• Key Earnings: ABM Industries (ABM)

The SEC is considering new rules that could speed the approval of new crypto ETFs, and a number of companies have filed applications for new products ahead of that possibility. Investopedia's Crystal Kim looked at what's going on and what it means in this story.

• The S&P 500 fell 0.6% on Friday, Aug. 29, 2025, receding from record levels after the latest PCE report revealed an uptick in "core" inflation.
• Dell Technologies beat second-quarter estimates but lowered its third-quarter outlook. Shares of the PC maker dropped. Ulta Beauty shares were also among the top decliners.
  
• Autodesk shares surged as AI-driven demand helped the engineering and design software provider top quarterly forecasts.
  

Major U.S. equities indexes retreated from recent highs as investors digested fresh economic data ahead of the three-day Labor Day weekend.

Friday's move lower came after the latest Personal Consumption Expenditures (PCE) report—a gauge of inflation closely monitored by the Federal Reserve—showed a month-over-month uptick in "core" PCE inflation in July.

The S&P 500 and the Dow declined 0.2% and 0.6%, after closing Thursday at record levels. Underperformance from the technology sector weighed on the Nasdaq, which fell 1.2%. Read Investopedia's full daily markets coverage here.

Shares of Dell Technologies (DELL) tumbled 8.9%, suffering the heaviest daily loss of any stock in the S&P 500. Although strong demand related to artificial intelligence helped the maker of personal computers, servers, and other IT hardware topped second-quarter sales and profit estimates, Dell's guidance for third-quarter earnings per share came in below consensus estimates.

Ulta Beauty (ULTA) shares dropped 7.1%. The decline reversed solid gains posted by the stock in the prior session. The cosmetics retailer late yesterday posted stronger-than-expected sales and profits for the second quarter and boosted its full-year revenue guidance. Ulta faces continued uncertainty related to potential tariff impacts.

Although many stocks with exposure to AI initially gained ground in the wake of the latest earnings report from AI semiconductor giant Nvidia (NVDA), the rally lost steam on Friday. Shares of Oracle (ORCL), the enterprise software firm that has recently announced major investments in AI and cloud infrastructure, slipped 5.9%, while shares of AI-focused server manufacturer Super Micro Computer (SMCI) ended 5.5% lower.

Autodesk (ADSK) shares bucked the downward pressure on the broader tech sector and software industries, jumping 9.1% to log the S&P 500's top performance. The engineering and design software provider topped second-quarter sales and adjusted profit estimates and lifted its full-year forecasts. Demand for its design software for AI data centers helped underpin the performance.

Shares of Cooper Cos. (COO), a medical device maker focused vision care and surgical products, advanced 4.4%. With the move higher heading into the holiday weekend, Cooper stock clawed back a portion of the heavy losses posted Thursday after the company missed quarterly revenue estimates and lowered its full-year sales forecast.

J.M. Smucker (SJM) stock also staged a recovery on Friday from a post-earnings swoon suffered earlier in the week, adding 3.6%. The maker of its namesake fruit spreads as well as the Hostess snack cake brand reported a loss for its fiscal first quarter and noted that tariffs were having a negative impact on its coffee business. On its earnings call, the company said it anticipates additional price hikes as it navigates tariff-related cost pressure.

The chips are down to close out August.

A range of chip stocks slid Friday, weighing on the major U.S. equities indexes in the last trading session of the month. China concerns weighed on the sector, but that wasn't the only factor that pulled shares lower.

The tech sector led losses on the S&P 500 Friday, with Nvidia (NVDA) among its biggest decliners. The giant's shares lost over 3% amid uncertainty about its China sales after it reported quarterly results Wednesday. Broadcom (AVGO), which reports next week, saw its stock fall close to 4%. Advanced Micro Devices (AMD) and other chip stocks were also lower, with the PHLX Semiconductor Index (SOX) down roughly 3%. 

Marvell Technology (MRVL) shares plunged the most of any stock in the sector index, losing nearly a fifth of its value after the firm posted an outlook that missed analysts' estimates, with concerns about U.S. restrictions on chip sales to China and Marvell's large exposure to the country adding to worries.

The Trump administration said Friday that it’s eliminating a Biden-era loophole allowing Samsung and SK Hynix subsidiaries in China to import American chipmaking equipment and software without a license, which could make it more difficult for the companies to upgrade plants and affect supply chains for other chip firms that rely on their manufacturing services. The rule is set to take effect in January. 

“The Trump Administration is committed to closing export control loopholes—particularly those that put U.S. companies at a competitive disadvantage. Today’s decision is an important step towards fulfilling this commitment," Under Secretary of Commerce Jeffrey Kessler said.

Samsung and SK Hynix, which both make chips for Nvidia and Broadcom, did not immediately respond to Investopedia's request for comment. Intel (INTC), which completed the sale of its facility in Dalian, China to SK Hynix earlier this year, was also named in Friday’s notice.

Meanwhile, Alibaba Group's (BABA) cloud computing unit reportedly developed a new chip more advanced than its legacy products that could help fill the void left by Nvidia's H20 AI chip that has yet to resume sales in China. Shares of Alibaba, also bolstered by its latest quarterly results, surged 13%.

August has been a strong month for most chipmakers, with the PHLX Semiconductor Index set to post gains for August on optimism about AI-driven growth, which helped buoy the S&P 500 to a record high yesterday. 

Shares of SentinelOne (S) rose nearly 6% Friday after the company became the latest cybersecurity firm whose results topped estimates as AI threats proliferate. 

SentinelOne on Thursday evening reported fiscal 2026 second-quarter annualized recurring revenue grew 24% year-over-year to surpass $1 billion for the first time, and raised its full-year revenue guidance. 

Jefferies analysts in a note on Friday attributed the strong results to "improved execution" and a broadening product portfolio, which will grow later this year when the company completes its acquisition of Prompt Security, "a pioneer in securing AI in runtime, preventing AI-related data leakage and protecting intelligent agents."

SentinelOne is the latest cybersecurity company to report strong demand amid a proliferation of AI-related threats. Palo Alto Networks (PANW) earlier this month topped sales and earnings estimates and issued stronger-than-expected guidance, as did Okta (OKTA). 

"As GenAI and agentic AI fundamentally reshape how businesses operate, new risks are emerging around visibility, compliance, data leakage and control," SentinelOne CEO Tomer Weingarten said on the company's earnings call, according to an AlphaSense transcript. 

Morgan Stanley analysts in a note last month identified three distinct "core secular security drivers" sustaining strong demand for cybersecurity products: "growth of the attack surface area" with the expansion of cloud computing and AI; "severity of the threat environment," referring to the increasing sophistication of AI-supported attacks; and "expanding regulatory/compliance requirements" stemming from the adoption of generative AI.

For that reason, cybersecurity remains a top priority for IT executives. According to Morgan Stanley's second-quarter Chief Information Officer survey, companies expect to increase cybersecurity software by 9.8% this year, up from 9.2% in the fourth quarter of 2024. That far outpaces plans for overall software spending, which respondents recently forecast would grow by 3.6%, down from 3.8% in the 2025 first quarter. 

• Alibaba Group's cloud computing unit is said to have developed a new chip more advanced than its legacy products, according to a Wall Street Journal report.
• The news hit markets Friday, with the e-commerce giant's stock rising as U.S. chip companies' shares largely fell.
• Alibaba's ambitions and emerging AI challengers in Shanghai and Beijing show that China won't roll over in the battle for AI dominance.

China intends to keep up with the Jensen Huangs of the world.

Recent moves out of the country's tech sector illustrate the country's ambitions to remain a contender in the race for AI dominance at a time when Nvidia (NVDA), its CEO Huang, and others hope to thwart its advance and battle for a big share of a multibillion-dollar Chinese market for AI technology.

The latest development: Chinese e-commerce juggernaut Alibaba Group Holdings' (BABA) cloud-computing unit is said to have developed a new chip more advanced than its legacy products, according to a new report from the Wall Street Journal. Other AI challengers are emerging from Shanghai to Beijing.

Alibaba did not respond to Investopedia's request for comment on the report in time for publication. But investors took note: Its stock, aided by its latest quarterly results, was more than 10% in recent trading Friday. Meanwhile, the PHLX Semiconductor Index (SOX) fell nearly 3%, with Marvell Technology's (MRVL) double-digit decline dragging on the overall index.

Shares of Nvidia (NVDA), Advanced Micro Devices (AMD), and Taiwan Semiconductor Manufacturing Company (TSM) were also down as of Friday afternoon.

Though the U.S. has blocked China from accessing critical AI tools on national-security grounds and boosted domestic companies, Chinese companies are finding workarounds. China appears intent on eschewing U.S.-made products for its own; Nvidia reportedly suspended production of its H20 chips after Beijing asked local firms to avoid using them due to security concerns.

Jack Ma-founded Alibaba could be a formidable challenger if its AI business grows up to be anything like its online retail business, which in its latest fiscal year generated roughly $81 billion in revenue. CEO Eddie Wu said the firm "has ambitions beyond competing in a single category" and will invest to drive growth in its cloud and AI infrastructure businesses, during its quarterly earnings call, per a transcript made available by AlphaSense.

Alibaba had previously announced plans to spend 380 billion renminbi, or over $50 billion, to drive growth in those businesses over the next three years. The company has also rolled out an AI model it said could outperform models from fellow Chinese challenger DeepSeek, OpenAI, and Meta Platforms (META). Cloud revenue grew 26% in the June-ended quarter.

"Alibaba Group has two historic opportunities to build a technology platform centered on AI plus cloud and to create a comprehensive shopping and daily life services consumption platform," Wu said Friday.

• U.S. equities were down at midday following a new report on inflation and ahead of the long Labor Day weekend.
• Caterpillar said tariffs would negatively impact results the rest of the year.
• Autodesk reported strong demand for its design software for artificial intelligence data centers.

U.S. equities were lower at midday, as inflation rose and investors pulled money out of the market ahead of the long Labor Day holiday. The Dow Jones Industrial Average, S&P 500, and Nasdaq all fell.

Caterpillar (CAT) shares sank when the big farm and construction equipment manufacturer warned tariffs will cost as much as $1.8 billion this year and hurt earnings.

Shares of Nvidia (NVDA) dropped on a report Alibaba Group Holdings (BABA) was producing an artificial intelligence (AI) chip to compete with Nvidia in China. U.S.-listed shares of Alibaba Group Holdings jumped.

Dell Technologies (DELL) shares tumbled after the PC maker's storage product sales missed forecasts and it gave weaker-than-expected current-quarter guidance. 

Autodesk (ADSK) was the best-performing stock in the S&P 500 when it beat earnings and revenue estimates and boosted its outlook on high demand for its AI data center design software.

Shares of Petco Health + Wellness (WOOF) took off after the pet supplies retailer reported an unexpected profit and raised its outlook, which it credited to its turnaround efforts.

Affirm Holdings (AFRM) shares jumped when the buy now, pay later lender posted better-than-expected results on higher consumer transactions.

Oil futures slid. Gold prices rose. The yield on the 10-year Treasury note gained. The U.S. dollar was little changed against the pound and yen, and lost ground to the euro. Most major cryptocurrencies traded lower. 

• Autodesk beat profit and sales estimates on artificial intelligence data center demand for its design software.
• Billings also exceeded forecasts.
• The company boosted its full-year outlook for adjusted earnings, revenue, and billings.

Investors drove shares of Autodesk (ADSK) 8% higher Friday, a day after the company posted better-than-expected results and raised its guidance on demand for its design software for artificial intelligence data centers.

Autodesk reported fiscal 2026 second-quarter adjusted earnings per share (EPS) of $2.62, with revenue rising 17% year-over-year to $1.76 billion. Both exceeded forecasts. Billings jumped 36% to $1.68 billion, also more than estimates. 

Design segment product sales increased 17% to $1.47 billion, and Make unit product sales were 20% higher to $194 million.

Sales of its Architecture, Engineering, Construction, and Operations (AECO) software grew 23% to $878 million, and its popular AutoCad and AutoCad LT software brought in $440 million, up 13%. 

CFO Janesh Moorjani said the company "saw strength in AECO, where our customers are benefiting from sustained investment in data centers, infrastructure, and industrial buildings, which is more than offsetting softness in commercial."

Autodesk now sees full-year adjusted EPS of $9.80 to $9.98, revenue of $7.025 billion to $7.075 billion, and billings of $7.355 billion to $7.445. Previously, the company's guidance was for adjusted EPS of $9.50 to $9.73, revenue of $6.925 billion to $6.995 billion, and billings of $7.160 billion to $7.310 billion.

The news lifted Autodesk shares into positive territory for the year.

• Marvell Technology shares plunged Friday after the chip designer issued a sales forecast below Wall Street’s expectations.
• The stock recently broke down below an uptrend line extending back to the April low before staging a retest of the indicator leading into the company’s quarterly results. 
• Investors should watch critical support levels on Marvell's chart around $62, $56, and $50, while also monitoring an overhead area near $78.

Marvell Technology (MRVL) shares plunged Friday after the chip designer issued a sales forecast below Wall Street’s expectations.

The company said it expects third-quarter revenue of $2.06 billion, give or take 5%, with that figure slightly below analysts' estimates. CEO Matthew Murphy said in the company's earnings call that he expects data center sales to be flat on a sequential basis, though he added that he anticipates stronger performance in the fourth quarter.

Shares of Marvell were down nearly 17% in recent trading, and have lost more than 40% of their value since the start of the year amid concerns the company could struggle to live up to investors' high expectations of AI-driven upside, coupled with uncertainty about U.S. chip restrictions on China sales, which represent a large portion of Marvell's revenue.

Below, we break down the technicals on Marvell’s chart and identify post-earnings price levels worth watching out for.

Marvell shares earlier this month broke down below an uptrend line extending back to the April low before staging a retest of the indicator leading into the company’s quarterly results. 

Although the recent move saw the relative strength index cross back into bullish territory, selling resumed Friday following the company’s light outlook.

The stock has also failed to reclaim the closely watched 200-day moving average after gapping below the indicator in March, indicating the bears remain in control of the longer-term price action.

Let’s point out three critical support levels to watch on Marvell’s chart if the shares continue losing ground, and also identify an overhead area worth monitoring.

The first lower level to watch sits around $62. This area may provide support near a range of corresponding trading activity on the chart stretching all the way back to the December 2023 high.

A close below this level could see the shares fall to support near $56. The shares may find buying interest at this location around last year’s January and August troughs, which also closely align with price action on the chart this year between April and May.

A failure to successfully defend this level may lead to retest of lower support at $50. Investors could look to buy shares in this region near the psychological round number situated in close proximity to prominent lows that formed on the chart in December 2023 and April this year.

During recovery efforts in Marvell shares, it’s worth keeping track of how the price responds to the $78 area. The shares could run into selling pressure at this level near a trendline that connects a series of peaks on the chart from May 2024 to August this year.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

• PepsiCo is leaning further into energy drinks, increasing its stake in Celsius Holdings to 11% in a $585 million deal.
• PepsiCo will distribute Celsius’ “female-focused” Alani Nu brand in the U.S. and Canada, while Celsius has bought the Rockstar Energy brand in the U.S. and Canada from the maker of Doritos and Pepsi soda.
• Celsius shares are rising in early trading Friday on the back of the PepsiCo stake purchase.

PepsiCo (PEP) is leaning further into energy drinks, increasing its stake in Celsius Holdings (CELH) to 11% in a $585 million deal.

The news sent shares of Celsius up 4% in early trading Friday, bringing their year-to-date gains to 140%.

As part of a deal the two have struck, PepsiCo has bought $585 million in newly issued convertible preferred shares in Celsius and extended its existing preferred shares. PepsiCo will distribute Celsius’ “female-focused” Alani Nu brand in the U.S. and Canada, while Celsius has bought the Rockstar Energy brand in the U.S. and Canada from the maker of Doritos and Pepsi soda.

PepsiCo will nominate an additional director to Celsius’s board and continue to own the Rockstar Energy brand internationally.

The deal “marks the next step in PepsiCo reshaping its brand portfolio," PepsiCo CEO Ram Krishnan said. “Energy is an important growth category, and we believe this move with our partner Celsius creates a stronger multi-brand energy portfolio that is better positioned to serve different consumer cohorts."

Shares in PepsiCo, whose other sports drinks include Gatorade, are little changed in early trading Friday and have lost 3% of their value so far this year.