Markets News, Sept. 4, 2026: Stocks Close Lower as Hot August Jobs Report Lifts Expectations for Fed Interest Rate Hike
Aaron RennieFri, September 4, 2026 at 1:52 PM GMT+3 15 min read
Credit: Michael M. Santiago / Getty Images
Major stock indexes closed lower Friday to snap a two-day winning streak amid fresh concerns that the Federal Reserve will decide to raise its key interest rate later this month. However, the Nasdaq Composite and S&P 500 ended higher for a second straight week.
The blue-chip Dow Jones Industrial Average, benchmark S&P 500, and tech-focused Nasdaq fell 0.5%, 0.4%, and 0.3%, respectively, today. For the week, the Nasdaq and S&P 500 ended a respective 0.4% and 0.1% higher, while the Dow shed 0.3%.
The Bureau of Labor Statistics' August employment report indicated the U.S. economy added 162,000 jobs in the month, well above the 53,000 expected by economists. The unemployment rate matched expectations at 4.1%, relatively low by historic standards.
The yield on the 10-year Treasury note—which influences interest rates on mortgages and auto loans—was above 4.78% at 4 p.m. ET, up from 4.75% immediately before the report and one basis point from Thursday's close. Traders now see a 58% likelihood that the Fed will raise interest rates at its September meeting, up from 51% right before the reading, per the CME Group's FedWatch tool.
"An upside surprise in payrolls will likely ramp up concerns about a rate hike, but that outcome is in the hands of next week's inflation numbers," Ellen Zentner, Chief Economic Strategist for Morgan Stanley Wealth Management, said in written commentary. "If those come in cooler than expected, the Fed will likely feel comfortable discounting potentially inflationary signals coming out of the labor market."
U.S. stock and bond markets will be closed Monday for the Labor Day holiday.
On Wednesday, the 10-year yield hit its highest intraday level since November 2023 amid concerns about sticky inflation due in part to elevated oil prices. Crude prices, which have surged this week as the U.S. and Iran have exchanged military strikes, were little changed Friday. U.S. benchmark West Texas Intermediate prices ticked 0.1% higher in late-afternoon trading to $91.35 a barrel, while Brent crude futures, the global benchmark, were up 0.7% at $96.15.
Bitcoin recently was at $79,800, down over the past 24 hours after hitting its highest level since May. Crypto-tied stocks Robinhood Markets (HOOD), Strategy (MSTR), and Coinbase Global (COIN) declined after registering double-digit gains Thursday.
The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, was 0.3% higher at 99.14. Gold futures pulled back 1.3% to $4,480 an ounce.
Lululemon Athletica (LULU) shares closed down 17% after the athleisure company issued a weaker-than-expected outlook for the current quarter. In other post-earnings moves, Guidewire Software (GWRE) sank 20%; UiPATH (PATH) retreated 17%; Asana (ASAN) dropped 13%; and Zscaler (ZS) fell 4.5%.
Tesla (TSLA) shares fell 6% after the U.S. National Highway Traffic Safety Administration said it had opened a probe "to examine the process and technical data on which Tesla relied when certifying the Cybercab and related issues." The other Magnificent Seven mega-cap tech stocks were mostly lower, with the Roundhill Magnificent Seven ETF (MAGS) down nearly 1.5%. Nvidia (NVDA) was up less than 1% after leading the Dow with a 3% gain Thursday after the world's most valuable public company bought open-source AI platform Hugging Face for nearly $13 billion.
Memory stocks advanced, with Sandisk (SNDK), Seagate Technology (STX), and Western Digital (WDC) all rising 6% to 12%. The Roundhill Memory ETF (DRAM) and the broader iShares Semiconductor ETF (SOXX) were up about 6.5% and 3.5%, respectively.
Elsewhere, Adobe (ADBE) shares were down more than 6.5% after the company named Anil Chakravarthy its new CEO, effective Dec. 1. The stock is down slightly this year amid worries about the impact of AI on the firm's software offerings.
SEPTEMBER 4, 2026 AT 08:11 PM GMT
Major US Stock Indexes End Mixed for Week
The Nasdaq Composite, S&P 500, and Dow Jones Industrial Average entered Friday on pace to close higher for a second straight week. One didn't finish that way.
After all three indexes dropped today, the Nasdaq and S&P 500 closed a respective 0.4% and 0.1% higher over the five sessions, while the Dow ended 0.3% lower.
For the year, the Nasdaq is up about 14%, while the S&P 500 and Dow are a respective 13% and 11% higher.
SEPTEMBER 4, 2026 AT 07:10 PM GMT
Guidewire Stock Dives on Soft Revenue Outlook
Guidewire Software had a better-than-expected fiscal 2026 fourth quarter. Its revenue outlook greatly disappointed investors, though.
Shares of Guidewire (GWRE) are sinking 21% Friday, a day after the cloud platform provider for property and casualty insurers issued soft revenue guidance.
The San Mateo, Calif.-based company sees fiscal 2027 first-quarter revenue of $372 million to $378 million. Analysts polled by Visible Alpha had expected $387.6 million.
In addition, Guidewire expects full-year revenue of $1.707 billion to $1.727 billion, with the midpoint coming in just below the Visible Alpha consensus of $1.72 billion.
However, Guidewire's Q4 profit and revenue topped expectations. "We closed a great fourth quarter, capping off an incredible year of expanding demand," CEO Mike Rosenbaum said, adding that "AI is driving our momentum, as more of our insurance customers choose to align their AI transformation with Guidewire."
Shares of Guidewire entered the day up about 1% on the year, but now are sharply in the red.
SEPTEMBER 4, 2026 AT 05:52 PM GMT
Tommy Bahama Parent Oxford Industries Stock Sinks on Lilly Pulitzer Weakness
Tommy Bahama sales eked out a year-over-year gain in the second quarter. That's just about the only good news for Oxford Industries.
Shares of Oxford (OXM) tumbled 17% Friday, a day after the company issued weak current-quarter guidance and slashed its full-year outlook following what CEO Tom Chubb called "softness" in its Lilly Pulitzer brand.
Oxford reported Q2 adjusted earnings of $1.34 per share, topping the Visible Alpha consensus of $1.31 per share. Net sales of more than $394 million declined 2.2% from a year ago, essentially in line with expectations.
However, while Tommy Bahama sales increased 0.8% to $230.9 million, those at Lilly Pulitzer fell 5.6% to $85.2 million and Johnny Was sales retreated 8.8% to $41.4 million.
Oxford cut its fiscal 2026 adjusted EPS forecast to $1.60 to $2 from the prior range of $2.30 to $2.70, and sees revenue of $1.43 billion to $1.47 billion, down from $1.475 billion to $1.505 billion. Its third-quarter projections were far worse than analysts' estimates.
"Tommy Bahama's positive momentum is being offset by softness in other parts of our portfolio, particularly Lilly Pulitzer, which we believe is primarily attributable to addressable product and marketing challenges in a fashion merchandising business," Chubb said. The combination of these internal headwinds and ongoing macro-economic consumer pressure has led us to lower our guidance for fiscal 2026."
With today's move lower, Oxford Industries shares moved into negative territory for the year.
SEPTEMBER 4, 2026 AT 05:08 PM GMT
Health Insurers Are Increasingly Addressing Americans' Top Care Obstacle
Some insurers are starting to address a problem that many Americans say impedes their access to healthcare.
UnitedHealthcare said this week that it will reduce its prior authorization requirements by 30% for some of its insurance plans. The reduction by the largest health insurance provider in the country will take effect on Oct. 1 and apply to Medicare Advantage and some commercial plans.
United is not alone. Competitor Humana began reducing its outpatient service prior authorization requirements by a third at the beginning of this year.
Credit: MoMo Productions / Getty Images
For some expensive prescription drugs and services, doctors or providers need prior authorization from the insurer before they can provide the care. Typically, insurance companies consider whether the care is medically necessary, safe, and cost-effective.
Read the full article here.
SEPTEMBER 4, 2026 AT 04:30 PM GMT
Memory, Other AI-Related Stocks Lead the Market's Top Performers Friday
The AI trade is bucking the trend Friday.
Memory chipmaker Sandisk's (SNDK) stock was up over 8% in recent trading, making it the biggest gainer in the S&P 500 on a day when the benchmark index lost ground. Other memory and data storage providers Seagate (STX), Western Digital (WDC), and Micron Technology (MU) all saw their stocks rise over 4%.
Chip equipment providers, and a broad range of other AI-related stocks, including Applied Materials (AMAT), Marvell Technology (MRVL), and Super Micro Computer (SMCI), also climbed. The PHLX Semiconductor Sector Index (SOX) was up more than 3% recently, while the Roundhill Memory ETF (DRAM) added 5%.
Technology was one of the few sectors in the S&P 500 in the green, after a stronger-than-expected jobs report raised expectations that the Federal Reserve could hike interest rates at its meeting later this month.
Credit: Krisztian Bocsi / Bloomberg via Getty Images
While rising rates typically pressure growth stocks, optimism around AI-related IPOs could help improve sentiment surrounding the sector, Bank of America analysts wrote in a Friday note. Strong quarterly earnings have also helped boost the AI trade broadly in recent weeks, though many of its leaders this year—such as Sandisk and Micron—remain off their highs earlier this year.
UBS analysts wrote yesterday that they "remain positive on the equity outlook and believe the latest company results support staying invested in AI."
SEPTEMBER 4, 2026 AT 04:22 PM GMT
You'll Pay for Record High Diesel Prices, Whether You Drive a Truck Or Not
The soaring cost of diesel fuel is likely to find its way into all kinds of other prices.
The price of diesel fuel hit a record high Friday after renewed fighting between the U.S. and Iran intensified the supply chain disruptions that have driven up energy costs this year. The national average of $5.85 per gallon surpassed the previous record set in 2022 following Russia's invasion of Ukraine, according to AAA.1 Diesel is 58% more expensive than the same day last year, according to AAA's data.
Even before the record high, economists had warned that rising fuel prices could result in higher inflation overall, at least in the short term.
Credit: Justin Sullivan / Getty Images
Transportation costs are passed down the supply chain, ultimately reflected in the price tags on all kinds of products. In the U.S. economy, gasoline moves people, since most passenger cars run on gasoline, but diesel moves everything else: trucks, not to mention farm and construction equipment, run on diesel.
Read the full article here.
SEPTEMBER 4, 2026 AT 03:42 PM GMT
NHTSA Says It's Looking Into Tesla's Cybercab Safety Standards. The Stock Is Sliding
Tesla's stock is taking a big hit, a day after the public launch of its highly awaited cybercab.
Shares of Tesla (TSLA) were down nearly 6% in recent trading, making it one of the leading decliners in the S&P 500 and Nasdaq on a down day for broader markets. The move erased much of the stock's gains earlier in the week.
The U.S. National Highway Traffic Safety Administration said in a notice yesterday that it has opened a probe into the cybercab "to examine the process and technical data on which Tesla relied when certifying the Cybercab and related issues."
Tesla did not immediately respond to a request for comment on the notice in time for publication.
Credit: Tesla
The electric vehicle maker late yesterday hosted a launch event for its cybercab in Austin, Texas, where it has deployed driverless rides in a limited service area. Tesla has said it plans to gradually expand the service to more cities.
The company's ability to scale its driverless ridesharing service, which now includes the cybercab, represents a key part of Tesla's plans to transform and grow its business with a focus on applications of physical AI.
Shares of Tesla surged in recent weeks leading up to the launch, though they're still lower for the year. The stock has lost about a fifth of its value in 2026.
SEPTEMBER 4, 2026 AT 03:09 PM GMT
Fair Isaac Stock Drops as FHFA's Pulte Ends Mortgage Score Monopoly
Fair Isaac stock is plummeting Friday, a day after Federal Housing Finance Agency (FHFA) Director Bill Pulte said "no more" to the company's monopoly on providing credit scores for mortgages.
Shares of Fair Isaac Corp. (FICO) are sinking 17% in late-morning trading to rank among the worst performers in the S&P 500 after Pulte wrote on X that "since 2020, FICO has increased the price per a person's credit score by 1,800%," adding that "FICO has enjoyed a monopoly. No more."
Pulte instead touted VantageScore, a rival credit-scoring system jointly developed by the three major credit bureaus, Equifax (EFX), Experian, and TransUnion (TRU), and said he was "instructing Fannie [Mae] and Freddie [Mac] to approve ALL lenders to use VantageScore."
However, shares of Equifax and TransUnion sank about 9% apiece, and Experian fell 5% in London trading, after Pulte separately wrote that the credit bureaus "have been overcharging Americans for far too long," and that "this will end soon."
Fair Isaac shares have lost 45% of their value this year.
Credit: Cheng Xin / Getty Images
SEPTEMBER 4, 2026 AT 01:38 PM GMT
Will Adobe's New CEO Be Able to Pull the Stock Out of Its Slump?
After a yearslong slump for Adobe's stock, can a new CEO drive a comeback?
The creative software giant late yesterday named Anil Chakravarthy its new CEO starting in December, ending months of speculation about who would succeed Shantanu Narayen after his plan to step down was announced back in March.
The initial response from investors isn't encouraging. Adobe shares, which coming into today's session had lost roughly 20% of their value since the start of the year, opened down 4% Friday.
Credit: Charles-McClintock Wilson / NurPhoto / Getty Images
Chakravarthy, who's been at Adobe (ADBE) for six and a half years and currently leads the company's customer experience unit, is "not who many expected," according to analysts at Jefferies. They thought the job would go to 19-year veteran and creative unit head David Wadhwani, who left shortly after the announcement.
Read the full article here.
SEPTEMBER 4, 2026 AT 01:01 PM GMT
The Job Market Bounced Back In August, Defying Headwinds
The job market is healthier than most forecasters believed.
U.S. employers added 162,00 jobs in August, accelerating after adding an upwardly revised gain of 21,000 in July, the Bureau of Labor Statistics said Friday. That was more than triple what forecasters had expected, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. The unemployment rate held steady at 4.1%, relatively low by historic standards.
The report added to evidence that the labor market is staying resilient against economic headwinds, including the rising fuel prices and frequently changing tariffs. Resilience, however, doesn't mean it's roaring ahead or that it's easy for job-seekers to find work.
Credit: Justin Sullivan / Getty Images
Employers have been reluctant to expand their payrolls due to uncertainty in the economy. Despite slower job creation than in the past, unemployment has remained low largely because fewer people are looking for work these days due to an aging population and President Donald Trump's crackdown on immigration.
Read the full article here.
SEPTEMBER 4, 2026 AT 11:50 AM GMT
Lululemon Shares Plunge 20% After Athleisure Retailer Slashes Full-Year Outlook
Incoming Lululemon Athletica chief executive Heidi O'Neill is inheriting a mess.
Shares of Lululemon (LULU) are plunging 20% in premarket trading Friday, a day after the athletic apparel retailer missed second-quarter revenue expectations and slashed its fiscal 2026 profit and revenue outlook.
The Vancouver, B.C.-based company now sees full-year earnings per share of $9.48 to $9.73, down from the prior range of $10.95 to $11.15, and revenue of $10.35 billion to $10.5 billion, down from a previous forecast of $11 billion to $11.15 billion.
Its second-quarter revenue declined 4% year-over-year to $2.42 billion and fell slightly short of Visible Alpha consensus estimates. EPS of $2.92—or $2.06 if you excluded an 86-cent tariff refund benefit—beat estimates.
Interim co-CEO and CFO Meghan Frank said on the earnings call that the company "faced negative commentary in the media and social channels" in Q2, according to an AlphaSense transcript. Frank added that "impacted traffic and softer-than-planned response to some new product launches, which contributed to a moderating sales trend."
Credit: Cheng Xin / Getty Images
After the report, UBS analysts reduced their price target on the stock to $106 from $120, writing that "we don't believe a pullback represents a good buying opportunity," Deutsche Bank slashed its target to $98 from $127.
New CEO and former Nike (NKE) executive O'Neill is set to take the helm of the retailer next week. Lululemon shares have dropped more than 40% since the start of the year.
SEPTEMBER 4, 2026 AT 10:52 AM GMT
Stock Futures Little Changed Ahead of Jobs Report
Futures contracts tied to the Dow Jones Industrial Average were 0.1% lower.
S&P 500 futures pointed 0.1% higher.
Nasdaq 100 futures rose 0.5%.
Read the original article on Investopedia
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