
Stock Market Today: Nasdaq, S&P 500, Dow Advance as Fed Politics Loom
Indices rise despite weak labor data, AI stock sell-offs, and Fed independence questions | That's TradingNEWS
U.S. Indices Edge Higher Amid Policy Tensions
The Dow Jones Industrial Average (DJIA) advanced 0.48% to 45,489.86, with industrial and consumer discretionary names lifting the blue-chip benchmark. The S&P 500 (SPX) rose 0.42% to 6,475.57, while the Nasdaq Composite (IXIC) gained 0.36% to 21,575.16. Small-caps joined the rally, with the Russell 2000 (RUT) adding 0.55% to 2,363.01, showing risk appetite is not confined to megacaps. Volatility receded sharply, with the VIX slipping 3.73% to 15.74, reflecting easing near-term hedging demand. The upward drift in equities comes even as concerns swirl around monetary policy independence, trade tariffs, and a weakening labor market.
Federal Reserve Politics Cloud Market Outlook
Political tension around the Federal Reserve dominated investor sentiment. President Trump’s push to secure Stephen Miran as Fed governor before the Sept. 16–17 policy meeting has raised questions over central bank independence. Miran pledged independence in Senate testimony, yet markets remain wary. The Justice Department’s criminal probe into Fed Governor Lisa Cook further complicates the backdrop. Bond markets reflected the unease, with the U.S. 10-year yield (BX:TMUBMUSD10Y) holding near 4.182%, down modestly on weaker job data. Rate futures still assign a 97% chance of a 25 bp cut later this month, but investors are factoring in heightened policy risk.
Labor Market Weakness Pressures Growth Outlook
Fresh data underscored a cooling jobs market. The ADP report showed just 54,000 private jobs were added in August, well below the 73,000 forecast and down from July’s 106,000. Weekly jobless claims rose to 237,000, above estimates, while prior job openings data showed a softening demand for labor. With nonfarm payrolls due Friday, economists expect around 75,000 new jobs, but the risk of further downside lingers. Weak hiring momentum is feeding speculation the Fed will accelerate cuts into 2026, yet it also signals slower corporate revenue growth ahead.
Tech Earnings Spark Divergence Across Nasdaq
The Nasdaq’s modest 0.36% climb masks sharp stock-specific moves. Salesforce (CRM) tumbled nearly 6% to $241.53 after guiding Q3 revenue between $10.24–10.29 billion, essentially flat and lagging AI-driven peers. The company still reported $10.24 billion in Q2 revenue, up 9.7% y/y, with EPS of $2.91 topping consensus, but its slower AI monetization disappointed. C3.ai (AI) plunged 14% to $16.09 after revenue fell 19% y/y to $70.3 million, with a net loss widening to $0.86 per share. Leadership transition to Stephen Ehikian underscores strategic uncertainty. Figma (FIG) slid 15% after breakeven results failed to justify its $50 billion IPO valuation, despite 41% revenue growth to $249.6 million. These declines highlight fading enthusiasm for richly valued AI trades. In contrast, Amazon (AMZN) rose 3.5% after JetBlue Airways (JBLU) agreed to deploy its Project Kuiper satellite broadband across part of its fleet, a notable commercial breakthrough.
Consumer Stocks Deliver a Bright Spot
Retail names bucked the tech weakness. American Eagle Outfitters (AEO) surged over 30% to $18.00 after earnings per share of $0.45 crushed expectations. Revenue of $1.28 billion beat consensus, while campaigns with Sydney Sweeney and Travis Kelce drove a surge in brand engagement. CEO Jay Schottenstein pointed to strong fall season momentum. Gap (GPS) climbed 4% on news that Old Navy will launch a beauty line, diversifying revenue into skincare and cosmetics. These consumer gains stand in contrast to broader discretionary weakness, underlining the impact of targeted brand strategies.
Broadcom and Semis Hold Investor Focus
All eyes turn to Broadcom (AVGO), which reports after the bell. Analysts expect EPS of $1.66 on revenue of $15.83 billion. Shares are already up 31% YTD, supported by AI chip demand and partnerships with Google. Evercore ISI raised its price target to $342, implying 13% upside from current levels. AVGO’s results will provide another critical gauge of whether AI-driven infrastructure demand is sustaining valuations across semiconductors, following Nvidia’s (NVDA) blockbuster report last week.
Metals and Commodities See Mixed Moves
Gold retreated 0.65% to $3,611.90/oz, pausing after record highs. Futures for December settled at $3,606.60. Goldman Sachs warned that a collapse in Fed independence could propel bullion to $5,000/oz, noting just 1% of U.S. Treasury flows into gold could ignite such a rally. Oil softened further, with WTI crude (CL=F) sliding 0.64% to $63.56, pressured by weak demand and news of workforce cuts at ConocoPhillips (COP), which plans to shed up to 25% of its employees. S&P GSCI Spot Index ticked up marginally 0.08% to 549.10, showing commodity resilience outside energy. Meanwhile, copper drew renewed bullish commentary from Goldman, forecasting $10,750/t by 2027 on surging grid investment.
Crypto Volatility Adds to Market Complexity
Digital assets mirrored risk jitters. Bitcoin (BTC-USD) fell 2.34% to $109,640, while ether (ETH-USD) saw ETF outflows as capital rotated back into BTC. Crypto-linked equities also moved: the newly listed American Bitcoin Company slipped 4% after debut gains of 16%. With bond yields stabilizing, traders appear to be rebalancing risk away from smaller cryptos back into core tokens.
Read More
-
Amazon Stock vs MELI Stock: Stocks Diverge at $235 and $2,420
Stocks · 04.09.2025 · TradingNEWS Archive
-
Ethereum Price Forecast - ETH-USD Holds $4,307 as ETFs and Staking Fuel Rally
Crypto · 04.09.2025 · TradingNEWS Archive
-
Oil Prices Hold WTI at $63 and Brent at $67 as Sanctions Tighten on Russia
Commodities · 04.09.2025 · TradingNEWS Archive
-
NYSEARCA:CHAT ETF Climbs 49.9%, Targets $91.82 Amid AI CapEx Wave
Markets · 03.09.2025 · TradingNEWS Archive
-
GBP/USD Price Forecast - GBP To USD Holds 1.3430 as U.S. Jobs Miss and BoE Policy Divergence Shape Outlook
Forex · 04.09.2025 · TradingNEWS Archive
Trade Policy and Tariff Overhang
Trump’s administration is escalating efforts to push “reciprocal” tariffs through the Supreme Court after a lower court rejection. The White House estimates $750 billion–$1 trillion in tariffs could accumulate by mid-2026 if upheld. Bank of America cautions tariffs may remain in place even if struck down, through alternative legislative routes. This uncertainty clouds multinational earnings, particularly for firms with heavy China or Mexico exposure such as Apple (AAPL), Tesla (TSLA), and PDD Holdings (PDD).
Financials and Banks Strengthen
The KBW Nasdaq Bank Index gained 0.93% to 150.32 as lower yields eased funding cost fears. Large-cap banks including JPMorgan Chase (JPM) and Goldman Sachs (GS) advanced, with GS also in focus for its $1 billion private markets partnership with T. Rowe Price (TROW). Shares of TROW jumped 5.5% on the deal, underscoring institutional appetite for alternative assets even as public market volatility rises.