U.S. equities advanced on Thursday, September 3, with the Nasdaq leading the large-cap benchmarks. Investors reassessed the prospect of a September interest-rate increase after Federal Reserve Governor Christopher Waller described conditions under which he could support unchanged rates.
Market at a Glance
| Index | Close | Daily change |
|---|---|---|
| S&P 500 | 7,747.71 | +81.11 (+1.06%) |
| Nasdaq Composite | 26,584.06 | +366.23 (+1.40%) |
| Dow Jones Industrial Average | 53,686.11 | +624.16 (+1.18%) |
| Russell 2000 | See note below | Approximately +0.5% |
For small caps, Armstrong Economics' daily recap reported a 0.51% Russell 2000 advance. An authoritative final index level could not be independently confirmed at publication, so no exact Russell close is presented.
Drivers and Movers
Waller's position was conditional: cooling inflation could justify a hold, while renewed price pressure could justify an increase. Reuters reported that September hike probabilities fell to 50.4% from 63.2% Wednesday. That was a repricing of uncertainty, not a promise of easier policy.
- Nvidia gained 1.8%.
- Broadcom fell 2.7% following a disappointing fourth-quarter revenue forecast.
- Snowflake rose 16.6% after a strong annual revenue outlook.
These regular-session moves come from the Reuters closing report.
Tesla rose 5.4% as investors positioned ahead of its Austin Cybercab launch, adding a company-specific catalyst to the broader rally. Forbes' pre-close report linked the advance to anticipation of the event; Reuters subsequently reported that Tesla was offering Cybercab rides in limited areas of Austin. The regular-session gain should therefore be distinguished from the later rollout details.
Analysis: Tesla's move is better characterized as an event-driven rally than unexplained price movement. It reflects expectations for the robotaxi business, not proof of its eventual scale or profitability.
Separately, Nvidia confirmed an agreement to acquire Hugging Face for approximately $12.93 billion. The transaction announcement should not be confused with a completed acquisition.
Treasury Yields and Oil
AP reported late-session Treasury yields of 4.77% for the 10-year and 4.34% for the two-year. Brent settled at $95.52 a barrel, down 0.1%; U.S. benchmark crude settled at $91.30, up 0.3%. Oil's limited net movement came despite renewed fighting involving Iran. These are settlement and late-session observations, not earlier intraday quotes. Source: AP market wrap.
Economic Data: Growth and Inflation Pull in Different Directions
The Institute for Supply Management's August services report showed a PMI of 55.4, up from 54.1 in July. New orders reached 60.9, while the employment component remained below the 50 threshold at 47.8. The prices component rose to 72.6, matching its highest level since October 2022.
Analysis: Strong demand alongside restrained hiring and elevated input prices complicates the policy outlook. Thursday's equity gains do not establish that inflation risk has passed; they show that markets responded favorably to the possibility of patience from the Fed.
What to Watch Next
The August employment report is scheduled for Friday, September 4, at 8:30 a.m. Eastern, or 8:30 p.m. Taipei. Payrolls, unemployment and wages will provide the next major test of the growth outlook. The BLS release calendar also lists August producer prices for September 10 and consumer prices for September 11.
Analysis: The combination matters more than any single number: softer labor conditions could strengthen the case for waiting, while renewed inflation pressure could challenge that view. Watch whether Treasury yields remain contained as those releases approach.
This article is for informational purposes only and does not constitute investment advice. Market prices and economic information can change after publication.