Market Summary
U.S. equities closed a choppy Friday session modestly lower, with the S&P 500 falling 19.23 points (-0.25%) to 7711.76 and the Nasdaq Composite dropping 138.93 points (-0.52%) to 26423.47, while the Dow Jones Industrial Average was essentially flat, off just 9.45 points (-0.02%) to 53559.99. The session was dominated by Fed Chair Kevin Warsh’s Jackson Hole address, in which he reiterated that inflation remains above the Fed’s 2% target and that price stability should be the central bank’s predominant focus. The hawkish tone triggered a sharp repricing of rate-hike expectations, with September FOMC hike odds jumping to 57.5%-60% from roughly 35-40% just a day earlier.
The market initially shrugged off the hawkish shift, rallying to session highs on strength in non-semiconductor mega-caps before fading into the close as Treasury yields climbed, particularly at the short end. Sector rotation was pronounced: consumer discretionary (+1.7%) and communication services (+1.6%) led on the back of Amazon and Alphabet strength, while semiconductors were the biggest drag, with the PHLX Semiconductor Index tumbling 3.5% amid a post-earnings giveback in NVIDIA and a double-digit decline in Marvell. Smaller-cap names bore the brunt of the rate repricing, with the Russell 2000 (-1.4%) and S&P Mid Cap 400 (-1.2%) posting considerably wider losses than the headline indices.
Despite Friday’s pullback, all three major averages closed the week higher, led by the Nasdaq’s 1.9% weekly gain, with the S&P 500 and Dow each up 0.5%. Gains remained narrowly concentrated in mega-cap growth and software names even as the broader market — including the Russell 2000 (-1.5% for the week) and S&P Mid Cap 400 (-1.3% for the week) — struggled against a backdrop of hawkish Fed commentary and rising yields.
Market Snapshot
| Index | Level | Change | % Change |
|—|—|—|—|
| Dow Jones Industrial Average | 53,559.99 | -9.45 | -0.02% |
| Nasdaq Composite | 26,423.47 | -138.93 | -0.52% |
| S&P 500 | 7,711.76 | -19.23 | -0.25% |
Advance/Decline (Briefing.com):
- NYSE: 1,141 advancers / 1,570 decliners, Volume: 1.01 bln
- Nasdaq: 1,512 advancers / 3,399 decliners, Volume: 8.51 bln
WaveFinder Breadth Metrics (as of 08/28/26):
- Primary Sentiment: Bullish | 4% Sentiment: Very Bearish | 40 SMA Sentiment: Neutral
- Primary Bulls/Bears: 781 / 542
- 4% Bulls/Bears: 76 / 333
- Stocks Above 20-day SMA: 19%
- Stocks Above 40-day SMA: 50.96%
- 9-Month Bulls/Bears: 7 / 26
- 9-Month Bull Follow-Through: 9.8%
Breadth was notably weaker than the headline indices suggest, with decliners outpacing advancers on both major exchanges and only 19% of stocks trading above their 20-day moving average — underscoring the narrow, mega-cap-driven nature of the session.
Sector Performance
Strong (Briefing.com Industry Watch):
1. Consumer Discretionary: +1.7%
2. Communication Services: +1.6%
3. Financials: +0.3%
4. Consumer Staples: (strong, no specific % provided)
5. Energy: (strong, no specific % provided)
Weak (Briefing.com Industry Watch):
6. Financials aside, six S&P 500 sectors finished lower
7. Industrials: -1.0%
8. Utilities: -1.1%
9. Information Technology: -1.3%
10. Materials: (weak, no specific % provided)
11. Real Estate: (weak, no specific % provided)
Within Information Technology, performance was sharply bifurcated — mega-cap hardware names (Apple, Microsoft) advanced while semiconductors cratered, sending the PHLX Semiconductor Index down 3.5% and the iShares Expanded Tech-Software Sector ETF down a milder 0.7%.
Key Earnings & Movers
- Amazon (AMZN) 266.43, +10.17 (+3.97%) — led consumer discretionary strength
- Alphabet (GOOG) 342.88, +5.17 (+1.53%) — supported communication services
- Microsoft (MSFT) 513.53, +8.47 (+1.68%) — mega-cap support amid tech sector weakness
- Apple (AAPL) 319.70, +5.12 (+1.63%) — mega-cap support amid tech sector weakness
- NVIDIA (NVDA) 217.48, -10.50 (-4.61%) — giving back a portion of Thursday’s post-earnings surge
- Marvell (MRVL) 216.62, -24.83 (-10.28%) — sold off despite raised long-term guidance (see Spotlight)
- Workday (WDAY) 205.74, +12.17 (+6.29%) — best-performing S&P 500 component on Q2 beat, AI traction, new buyback authorization
- PayPal (PYPL) 53.66, -7.81 (-12.71%) — worst S&P 500 performer after Bloomberg reported the Advent/Stripe consortium abandoned its ~$50 bln leveraged buyout plan
- Ulta Beauty (ULTA) — traded lower despite a beat-and-raise Q2 (EPS $6.55, revenue +8.9% yr/yr to $3.04 bln); tempered FY27 guidance ($28.70-29.00 EPS, $13.22-13.28 bln revenue) weighed on sentiment
Stock Spotlight
Marvell Technology (MRVL) was the session’s most notable mover, sliding 10.28% to 216.62 despite delivering a fundamentally strong quarter. Q2 (July) revenue grew 36.5% yr/yr to a record $2.74 billion, with Data Center revenue up 46% yr/yr and 18% sequentially to $2.17 billion. Q3 guidance called for Data Center growth of 75% yr/yr and more than 20% sequentially, and management raised its FY27 revenue outlook to $12 billion (+45%) from $11.5 billion, while lifting FY28 guidance to $18 billion (+50%) from $16.5 billion (+45%) — reinforcing the bullish long-term AI infrastructure narrative.
The stock’s decline appears driven by elevated investor expectations rather than any deterioration in the underlying story. Having rallied more than 40% since late July, and following NVIDIA’s strong print earlier in the week, investors were seemingly positioned for even greater upside. Modest EPS beat and slightly contracting Q3 gross margin guidance (57.5-58.5%, down from Q2’s 58.9%) — reflecting mix pressure from the ramping Custom business — gave traders reason to book profits. Briefing.com’s analysis frames this as a “sell-the-news” reaction rather than a fundamental red flag, given the broad-based acceleration across interconnect, switching, and Custom silicon.
Bond Market & Treasuries
Treasuries sold off sharply following Fed Chair Warsh’s Jackson Hole remarks, with yields on 3-year and 5-year notes hitting fresh highs for the year. The 5-year yield reached its highest level since early 2025.
| Tenor | Yield | Daily Change | Weekly Change |
|—|—|—|—|
| 2-Year | 4.35% | +12 bps | +12 bps |
| 3-Year | 4.40% | +10 bps | +9 bps |
| 5-Year | 4.48% | +9 bps | +6 bps |
| 10-Year | 4.72% | +5 bps | -2 bps |
| 30-Year | 5.21% | +2 bps | -7 bps |
The 2s10s spread tightened by 14 bps to 37 bps this week, reversing from a widening trend (27 bps to 52 bps) over the prior two months. The long bond outperformed on the week even as it slipped Friday, while short-tenor selling was paced by the jump in implied September rate-hike odds to roughly 57.5%-60%.
Commodities
- WTI Crude Oil: $83.38/bbl, -0.2% (down 4.2-4.3%, or ~$3.69/bbl, for the week amid volatility tied to Iran/Strait of Hormuz developments)
- Gold: $4,528.40/ozt, -2.9%
- Copper: $6.66/lb, -0.5%
- Silver: Not provided in data
Currencies: EUR/USD -0.6% to 1.1582; GBP/USD -0.4% to 1.3532; USD/CNH +0.2% to 6.7325; USD/JPY +0.5% to 160.10. The U.S. Dollar Index climbed 0.5% to 99.69, reclaiming its 200-day moving average (99.16) and adding 0.9% for the week.
Overseas Markets
No specific overseas index levels were provided in today’s data; however, key international economic releases included:
- Japan: August Tokyo CPI +1.9% yr/yr (prior 1.8%); Tokyo Core CPI +1.8% yr/yr (as expected); July jobs/applications ratio held at 1.18; July Unemployment Rate fell to 2.4% from 2.5%. PM Takaichi confirmed cabinet changes planned for second half of September.
- India: July Industrial Production +6.7% yr/yr (better than 6.0% expected, but down from 8.8% prior); Manufacturing Output +7.3% m/m (down from 9.5%).
- Eurozone: August Business and Consumer Survey rose to 98.4 from 97.1 (better than 97.5 expected).
- Germany: July Import Price Index +0.2% m/m (vs. 0.3% expected); August Unemployment rose 4,000 (as expected); Unemployment Rate steady at 6.4%.
- France: Q2 GDP flat qtr/qtr (vs. 0.2% expected); August CPI +0.7% m/m, +2.4% yr/yr; Finance Minister Lescure noted the economy “suffered greatly” from the summer heatwave, with Q3 data expected to be similarly impacted.
- Italy: August Business Confidence rose to 89.9 from 89.7; Consumer Confidence rose to 94.5 from 94.2.
- Spain: August CPI +0.7% m/m, +4.3% yr/yr (above expectations); Core CPI +2.9% yr/yr.
- Switzerland: August KOF Leading Indicators rose to 106.7 from 104.2, well above the 103.0 consensus.
Additionally, the U.S. Treasury announced steps to revoke Banque Misr UAE’s access to U.S. financial institutions over support for the Iranian regime, and S&P affirmed China’s A+ sovereign rating with a Stable outlook.
Economic Data
- August Chicago PMI: 47.1 (Briefing.com consensus 57.0; prior 57.6) — a sharp miss signaling contraction in regional manufacturing activity.
- August University of Michigan Consumer Sentiment (Final): 51.7 (Briefing.com consensus 51.0; prior reading 51.0; final July reading 55.2; year-ago level 58.2). Briefing.com’s key takeaway: persistent inflation concerns are undercutting consumer sentiment.
Both releases reinforced the inflation-focused, hawkish tone set by Fed Chair Warsh’s Jackson Hole remarks, contributing to the day’s rise in Treasury yields and rate-hike expectations.
Looking Ahead
Monday: Nothing of note scheduled.
Tuesday:
- Final August S&P Global U.S. Manufacturing PMI (prior 53.2) at 9:45 ET
- July Job Openings (Briefing.com consensus 7.390 mln; prior 7.359 mln)
- July Construction Spending (Briefing.com consensus 0.2%; prior -0.1%)
- August ISM Manufacturing Index (Briefing.com consensus not fully specified in available data)
Markets will continue to digest Fed Chair Warsh’s hawkish Jackson Hole remarks and the sharply repriced September rate-hike odds heading into next week’s data-heavy calendar, with particular focus on labor market and manufacturing indicators that could further influence FOMC expectations.