The S&P 500 edged up 0.09% last week as investors weighed stronger-than-expected August job growth, shifting expectations for Federal Reserve policy, and renewed geopolitical concerns. The Nasdaq Composite gained 0.40%, while the Dow Jones Industrial Average slipped 0.27%. The MSCI EAFE Index declined 0.25%.¹˒²
Summer’s Final Act
Stocks fell modestly and oil prices moved higher at the start of the week as renewed tensions in the Middle East put investors on edge. Longer-maturity Treasury yields also moved higher, adding pressure to stocks.³
That pressure continued as global bond yields climbed and investors worried that higher oil prices could add to inflation. Benchmark government bond yields in the U.S., Germany, and Japan reached 20-month, 15-year, and 30-year highs, respectively.³
Stocks rebounded in the middle of the week after Fed Governor Christopher Waller suggested the Federal Reserve could leave interest rates unchanged at its meeting later this month. Each of the major averages gained 1% or more.⁴˒⁵
Then came Friday’s jobs report. The Labor Department reported stronger-than-expected job growth in August, and stocks remained under pressure throughout the day as investors viewed the report as a potential reason for the Fed to reconsider its interest rate policy later this month.⁶
Jobs Update
Wednesday’s ADP National Employment Report showed private-sector hiring slowed in August, with companies adding just 38,000 jobs.⁷
That made Friday’s report a surprise for investors. The U.S. economy added 162,000 jobs in August, more than three times the 53,000 jobs economists had expected and the largest monthly gain in five months. The unemployment rate remained unchanged at 4.1%.⁸
Economic News to Watch
Tuesday: NFIB Small Business Optimism Index. Consumer Credit.
Thursday: Weekly Jobless Claims. Producer Price Index (PPI). Monthly Wholesale Trade. Existing Home Sales.
Friday: Consumer Price Index (CPI). University of Michigan Consumer Survey. Monthly Treasury Balance.
Source: Investors Business Daily - Econoday economic calendar; September 4, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.
Upcoming Earnings Reports
Tuesday: Oracle Corporation (ORCL)
Thursday: Adobe Inc. (ADBE)
Source: Zacks, September 4, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.
Footnotes and Sources- WSJ.com, September 4, 2026
- Investing.com, September 4, 2026
- CNBC.com, September 1, 2026
- CNBC.com, September 2, 2026
- CNBC.com, September 3, 2026
- WSJ.com, September 2, 2026
- WSJ.com, September 4, 2026
- WSJ.com, September 4, 2026
Source: YCharts.com, September 5, 2026. Weekly performance is measured from Monday, August 31 to Friday, September 4. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.