Stock Market Update
03-Sep-26 10:05 ET
Easing yields, rate hike odds send stocks higher
Dow +300.92
at 53362.87,
Nasdaq +177.50
at 26416.38,
S&P +31.24
at 7697.84
[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.7%), and DJIA (+0.6%) are off to another solid start this morning as Treasury yields continue to ease. The 10-year note yield is currently down five basis points to 4.75%.
Additionally, expectations for a September rate hike have eased following comments from Fed Governor Waller. While Waller acknowledged that inflation remains meaningfully above the Fed's 2.00% target and left open the possibility of another rate hike if progress stalls, markets appear more focused on his view that recent data have shown encouraging signs of disinflation. The CME FedWatch Tool now assigns a 49.6% probability to the Fed leaving rates unchanged at its September meeting, up from 36.8% yesterday.
Eight S&P 500 sectors trade higher, with some solid gains across mega-cap stocks pushing the communication services (+1.5%) and consumer discretionary (+1.2%) sectors to the top of the leaderboard. Meta Platforms (META 612.59, +19.74, +3.33%) and Tesla (TSLA 373.10, +16.09, +4.51%) are among the standouts, and the Vanguard Mega Cap Growth ETF is up 1.0%.
Meanwhile, the information technology sector (+0.3%) holds a narrower gain as Broadcom (AVGO 344.23, -23.01, -6.26%) leads the semiconductor group lower after its earnings report. The PHLX Semiconductor Index is down 2.1%.
However, software stocks are bouncing back from a sharp retreat yesterday, with an impressive earnings beat from Snowflake (SNOW 374.73, +68.89, +22.52%) contributing to strength in the iShares GS Software ETF (IGV 106.88, +3.46, +3.35%).
The defensive consumer staples (-0.5%) and health care (-0.4%) sectors trade lower, with Tyson Foods (TSN 52.89, -2.92, -5.23%) falling sharply after lowering its FY26 revenue guidance, while the materials sector (-0.5%) also trades lower.
On the data front, the final reading of the August S&P Global U.S. Services PMI registered at 56.5, down from the previous reading of 56.8.
The ISM Services PMI edged up to 55.4% in August (Briefing.com consensus: 54.1%) from 54.1% in July.
