Market Summary
U.S. equities closed out a volatile week on a softer note Friday, with the major averages pulling back after a stronger-than-expected August Employment Report reignited expectations for a September rate hike. The S&P 500 fell 29.11 points (-0.38%) to 7,718.60, the Dow shed 271.86 points (-0.51%) to 53,414.25, and the Nasdaq Composite slipped 77.07 points (-0.29%) to 26,528.04. Small- and mid-caps bucked the trend, with the Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.1%) posting modest gains on the day.
The catalyst was clear: August Nonfarm Payrolls surged to 162,000 versus a Briefing.com consensus of just 45,000, while the unemployment rate ticked down to 4.1% (better than the 4.2% expected). The data pushed the CME FedWatch implied probability of a 25-basis-point September rate hike to roughly 60%, up from about 50% a day earlier, and hawkish commentary from voting FOMC member Beth Hammack (“it’s time to act”) reinforced the shift. Treasury yields backed up across the curve in response, pressuring rate-sensitive mega-cap and growth names.
Beneath the modest index-level declines, dispersion was significant. Semiconductor stocks rallied hard — the PHLX Semiconductor Index jumped 3.4% — lifting Information Technology (+0.2%) and Industrials (+0.4%) to the top of the sector leaderboard, even as software names were routed (iShares GS Software ETF -2.2%) following Adobe’s CEO transition news. Consumer Discretionary (-1.3%) led decliners as Tesla reversed course and Lululemon collapsed post-earnings, while credit-scoring names FICO, Equifax, and TransUnion were hammered on regulatory headlines from FHFA Director Bill Pulte. For the week, the S&P 500 (+0.1%), Nasdaq (+0.4%), and DJIA (-0.3%) finished essentially flat despite a highly volatile stretch driven by surging oil prices, swinging Treasury yields, and shifting Fed expectations.
Market Snapshot
| Index | Level | Change | % Change |
|—|—|—|—|
| Dow Jones | 53,414.25 | -271.86 | -0.51% |
| Nasdaq Composite | 26,528.04 | -77.07 | -0.29% |
| S&P 500 | 7,718.60 | -29.11 | -0.38% |
Breadth (NYSE): Advancers 1,321 | Decliners 1,369 | Volume 987.83 mln
Breadth (Nasdaq): Advancers 2,532 | Decliners 2,338 | Volume 6.54 bln
WaveFinder Market Breadth (as of 2026-09-04):
- Primary Sentiment: Bullish (Bulls 795 / Bears 535)
- 4% Sentiment: Bullish (Bulls 206 / Bears 104)
- 40 SMA Sentiment: Neutral
- % of stocks above 20-day SMA: 23%
- % of stocks above 40-day SMA: 49.91%
- 9-Month indicator: Bulls 24 / Bears 7 (30% bull follow-through)
Breadth was roughly flat-to-negative on the session (NYSE decliners slightly outpacing advancers) despite constructive underlying WaveFinder sentiment readings, underscoring the narrow, semiconductor-led nature of Friday’s relative outperformance.
Sector Performance
Ranked by daily performance (Briefing.com Industry Watch), with WaveFinder ATR volatility context where available:
1. Industrials +0.4% — Industrials ATR -1.68% (falling, P0); lifted by spillover strength from semiconductor names
2. Information Technology +0.2% — ATR -0.91% (falling, P63); sharp internal split between hardware/semis (strong) and software (weak)
3. Financials -0.8% — ATR 0.93% (falling, P58); pressured by credit-bureau sell-off
4. Communication Services -0.9% — ATR 1.26% (falling, P21); weakness in large-cap components
5. Consumer Discretionary -1.3% — ATR -0.68% (falling, P0); Tesla and Lululemon weighed heavily
6. Energy — listed as weak; ATR 2.47% (rising, P47) — highest volatility reading of the session
7. Materials — listed as weak; ATR 0.02% (falling, P5)
8. Health Care — listed as weak; ATR 2.05% (falling, P16)
9. Real Estate — listed as weak; ATR -2.14% (falling, P0)
10. Consumer Staples — listed as weak; ATR 0.16% (flat, P5)
11. Utilities — not classified in Industry Watch; ATR -2.21% (flat, P26)
Note: Specific daily % changes were not provided for Energy, Materials, Health Care, Real Estate, and Consumer Staples beyond their “weak” classification.
Key Earnings & Movers
- Sandisk (SNDK) $1,740.00, +$185.01 (+11.90%) — Top gainer on stronger DRAM/NAND pricing, robust server demand, and a technical rebound
- FICO (FICO) $932.26, -$186.67 (-16.68%) — Plunged after FHFA Director Bill Pulte said Fannie Mae/Freddie Mac will allow lenders to use VantageScore, threatening FICO’s mortgage-scoring dominance
- lululemon athletica (LULU) $100.61, -$21.16 (-17.38%) — Fell below $100 for the first time in years after a steep Q2 miss and second consecutive FY27 guidance cut
- Adobe (ADBE) $266.51, -$19.24 (-6.73%) — Software laggard after naming a new CEO
- Tesla (TSLA) $354.08, -$22.28 (-5.92%) — Gave back Thursday’s rally
- Equifax (EFX) $177.05, -$12.04 (-6.37%) — Swept up in the credit-bureau sell-off alongside FICO
- TransUnion (TRU) $79.88, -$5.04 (-5.94%) — Pulte also floated a “bi-merge” credit-report system, pressuring the group
- Oracle (ORCL) $158.83, +$4.79 (+3.11%) — Ahead of its earnings report, due after Thursday’s close next week
- DocuSign (DOCU) — Traded higher after a Q2 beat; IAM platform now 15.1% of ARR, with FY27 ARR growth guidance raised to +8.5–9.0% from +8.25–8.75% (specific price/change not disclosed in source data)
Stock Spotlight
lululemon athletica (LULU): -17.38% to $100.61
Lululemon’s stock fell below the $100 mark for the first time in years following a disappointing Q2 (July) report that extended a troubling trend of decelerating sales and eroding guidance. Revenue declined 4% year-over-year to $2.42 billion, missing expectations, while EPS of $2.92 — though above prior guidance — included an $0.86 benefit from tariff refunds and was down from $3.10 a year ago. Overall comparable sales fell 9% (10% in constant currency), driven by broad traffic weakness: Americas comps dropped 12% (versus -5% in Q1), while international comps swung to -3% (-6% CC) from +13% growth in Q1, with China — previously a growth engine — seeing comps decline 8% in CC. Leggings, a core category, fell approximately 20%.
The bigger issue for investors was guidance. LULU cut its FY27 outlook for the second consecutive quarter, with Q3 EPS and revenue guidance coming in well below expectations. Operating margin declined 190 basis points to 18.8% despite the tariff-refund tailwind, as product margin pressure (tariffs, markdowns) and 230 bps of fixed-cost deleverage took a toll. Management is responding with heavier second-half marketing investment and a more aggressive product-chase strategy (~20% higher chase volume), but with traffic weakness persisting across its two largest markets and a CEO transition looming, the market reaction reflects deepening concern about the brand’s near-term trajectory.
Bond Market & Treasuries
Treasuries sold off Friday after opening with modest gains, reversing sharply on the strong jobs data before paring some losses into the close.
| Tenor | Yield | Daily Change | Weekly Change |
|—|—|—|—|
| 2-Year | 4.38% | +5 bps | +3 bps |
| 3-Year | 4.45% | +4 bps | +5 bps |
| 5-Year | 4.55% | +4 bps | +7 bps |
| 10-Year | 4.78% | +2 bps | +6 bps |
| 30-Year | 5.25% | Unch | +4 bps |
The 2s10s spread widened by 3 basis points this week to 40 bps, with relative weakness concentrated in the belly of the curve. The primary driver was the August jobs report, which pushed the implied probability of a September rate hike to roughly 60% via the CME FedWatch Tool. Next week’s Producer Price Index (Aug PPI consensus +0.4%, prior 0.0%) and Consumer Price Index (Aug CPI consensus +0.4%, prior +0.1%) reports on September 11 are seen as the next major catalysts for rate expectations ahead of the September 15–16 FOMC meeting.
Commodities
| Commodity | Price | Change |
|—|—|—|
| WTI Crude | $91.50/bbl | +$0.15 (+0.2%) |
| Gold | $4,476.00/ozt | -1.4% |
| Copper | $6.68/lb | +0.2% |
WTI crude gained roughly 10% for the week (narrowing to a +$8.12/bbl weekly gain by Friday’s close), with prices lifted by ongoing U.S.-Iran tensions and Strait of Hormuz concerns, though Friday itself saw a “relative lack of new developments.” Gold fell 1.4% amid a firmer U.S. Dollar Index, which rose 0.3% to 99.16 (trimming its weekly decline to 0.5%).
Overseas Markets
Specific overseas index closing levels were not available in today’s data; however, key international developments and currency moves included:
- Japan: Finance Minister Katayama confirmed the FY27/28 budget will reach a record JPY 143 trillion. July Household Spending rose 0.5% m/m (expected +2.6%; prior -6.4%) but fell 3.6% yr/yr.
- South Korea: July Current Account surplus came in at $42.08 billion, down from a $49.73 billion surplus previously.
- Eurozone: July Retail Sales fell 0.6% m/m (expected +0.3%) but rose 0.6% yr/yr.
- Germany: July Factory Orders rose 2.5% m/m, beating the 0.3% consensus.
- Italy: July Retail Sales fell 0.4% m/m but rose 0.8% yr/yr.
- U.K.: Reportedly moving to approve new North Sea oil drilling efforts.
- Corporate: Volkswagen’s supervisory board approved a plan for up to 50,000 additional job cuts.
Currencies: EUR/USD -0.1% to 1.1612 | GBP/USD -0.1% to 1.3515 | USD/JPY +0.3% to 156.22 | USD/CNH -0.1% to 6.7084
Economic Data
August Employment Situation Report (released 8:30 ET):
- Nonfarm Payrolls: +162,000 (consensus +45,000); July revised up to +21,000 from -23,000; June revised to +31,000 from +20,000
- Private Payrolls: +127,000 (consensus +45,000)
- Unemployment Rate: 4.1% (consensus 4.2%, prior 4.1%)
- Average Hourly Earnings: +0.3% m/m (consensus +0.2%); +3.1% yr/yr, down from +3.2%
- Average Workweek: 34.4 hours (consensus 34.3, prior 34.3)
- Labor Force Participation Rate: 61.6% (up from 61.4%)
- U6 Underemployment Rate: 7.7% (down from 7.9%)
Market Impact: The headline beat was interpreted as increasing the odds of a September Fed rate hike, pushing the 2-year yield up 5 bps to 4.38% and the 10-year up 2 bps to 4.78%, while equities gave back a portion of the week’s gains. Softer underlying details — a 3-month payroll average of just 71,000 and long-term unemployed rising to 27.0% of total unemployed (from 25.5%) — tempered the hawkish read somewhat.
Looking Ahead
- Monday, Sept 7: Bond and equity markets closed for Labor Day
- Tuesday, Sept 8: August NFIB Small Business Optimism Index (consensus 99.3; prior 99.8) at 6:00 ET; $58 billion 3-year Treasury note auction
- Thursday: Oracle (ORCL) reports earnings after the close
- September 11: August PPI (consensus +0.4%; prior 0.0%) and August CPI (consensus +0.4%; prior +0.1%) — key inputs for September rate-hike expectations
- September 15–16: FOMC meeting — markets currently pricing ~58-60% probability of a 25-bp hike to 3.75–4.00%
The upcoming week is described as an “abbreviated week” that will be “relatively light on the earnings front,” with the primary focus shifting to inflation data and its implications for the Fed’s September policy decision under new Chair Kevin Warsh.