The S&P 500 rose 0.37%, the Dow gained 0.34%, and the Nasdaq 100 added 0.18% as investors reacted to comments from Federal Reserve Chair Warsh. He said he was encouraged by the economy’s strength and vowed to bring inflation back to the Fed’s 2% target. Futures pointed higher, pushing major indices to fresh one‑to two‑week highs.
Economic data released today presented a mixed picture. The University of Michigan’s August consumer‑sentiment index was revised upward by 0.7 points to 51.7, beating expectations, while one‑year inflation expectations fell to 4.0% from 4.3%. However, the August MNI Chicago PMI unexpectedly contracted to 47.1, and the annual benchmark revision to 2026 non‑farm payrolls showed a surprise decline of 79,000 jobs, suggesting a weaker labor market.
Chipmakers and AI‑infrastructure names lagged, led by a 7% drop in Marvell Technology after the firm forecast a lower Q3 gross‑margin range. Oil prices slipped nearly 1% as Gulf exports rose and Venezuela considered leaving OPEC.
Elsewhere, September Treasury yields moved higher after hawkish remarks from Warsh lifted the odds of a 25‑basis‑point rate hike at the next FOMC meeting to about 56%. European bond yields also rose, with German bunds hitting a 15‑year high.
Markets continue to price in strong earnings. The S&P 500 is on track for a nearly 32% Q2 earnings surge, with AI‑related stocks expected to contribute a large share of that growth. So far, 86% of reporting S&P 500 companies have beaten estimates.
Overseas, the Euro Stoxx 50 gained 0.97%, while Japan’s Nikkei rose 0.41% and China’s Shanghai Composite fell 0.11% from a recent peak.
Interest Rates
September 10‑year T‑notes fell 2 ticks, pushing the yield up 0.4 bp to 4.674%. The move followed Fed Chair Warsh’s comments that raised the probability of a rate hike at the next FOMC meeting. Defensive pressures were offset by the weaker payrolls revision, softer Chicago PMI, and declining inflation expectations, which limited the bond sell‑off.
US Stock Movers
Most of the Magnificent Seven technology stocks, except Tesla and Nvidia, moved higher. Amazon rose more than 4%, while Apple, Alphabet, Meta Platforms and Microsoft each gained over 2%. Software firms such as Workday (+5%), ServiceNow (+4%) and Atlassian (+4%) also advanced. Salesforce led Dow gainers with a more than 4% rise.
Chipmakers and AI‑infrastructure names were under pressure, with Marvell Technology down 7% after forecasting a lower Q3 gross‑margin midpoint. The iShares Semiconductor ETF (SOXX) fell more than 1%, and ARM Holdings, Analog Devices, KLA Corp and Applied Materials each declined over 2%.
Other notable movers included Elastic NV (+17%) after a strong earnings beat and raised guidance, Gap (+13%) on upgraded 2027 EPS outlook, and Affirm (+8%) on better‑than‑expected revenue. PayPal fell 11% after a consortium abandoned its acquisition bid. Autodesk slipped 3% on softer Q3 EPS guidance.
Earnings Reports (8/28/2026)
Domo Inc (DOMO), Hub Group Inc (HUBG), Liberty Live Holdings Inc (LLYVA), SR Bancorp Inc (SRBK).
