The U.S. stock market surged on Thursday, September 4, 2025, as fresh labor market data fueled expectations that the Federal Reserve will cut interest rates at its upcoming meeting. Investors are now closely watching Friday’s August jobs report for confirmation.
Thursday’s Market Performance: Record Highs Across Major Indexes
All three major U.S. stock indexes closed higher:
- S&P 500: +0.8% to a new record closing high — the first in a week.
- Dow Jones Industrial Average: +0.8% (350 points).
- Nasdaq Composite: +1%, just shy of its own record high.
This marks a strong week for equities, with optimism fueled by weaker-than-expected labor market data.
Labor Market Data Driving Fed Rate-Cut Expectations
- ADP Report: Private sector hiring in August rose by 54,000 jobs — below forecasts of 73,000.
- Weekly Jobless Claims: Slightly above estimates.
These figures suggest a cooling labor market, reinforcing the view that the Federal Reserve is likely to cut rates on September 17.
The CME FedWatch Tool shows a 97% probability of a 25-basis point reduction.
Economists expect Friday’s official August jobs report to show:
- 75,000 jobs added.
- Unemployment rate rising to 4.3%.
Performance Across Asset Classes
- Treasury Yields: The 10-year yield fell to 4.16%, the lowest since early May.
- Technology Stocks: Big tech rallied — Amazon (AMZN) jumped 4.3% after JetBlue became the first airline partner for its Project Kuiper satellite internet.
- Gold: Pulled back 0.9% to $3,600/oz after three straight record highs.
- Oil: WTI crude slipped 1% to $63.35/barrel.
- Bitcoin: Trading at around $110,500, down from a recent high.
- U.S. Dollar: Up slightly (+0.1%).
Notable Stock Movers
Biggest Gainers:
- T. Rowe Price (TROW): +5.8% after announcing a partnership with Goldman Sachs.
- Williams-Sonoma (WSM): +5.6%, boosted by housing market optimism.
- Amazon (AMZN): +4.3% on satellite internet deal.
- American Eagle Outfitters (AEO): +38% after strong earnings.
Biggest Losers:
- Salesforce (CRM): -5% despite strong earnings, due to weaker guidance.
- NiSource (NI): -4.7% on regulatory concerns.
- Centene (CNC): -4.7% after a price target cut from Barclays.
What to Watch on Friday, September 5, 2025
Markets are bracing for the August nonfarm payrolls report:
- Dow Futures: -0.1%
- S&P 500 Futures: +0.2%
- Nasdaq-100 Futures: +0.5%
In after-hours trading Thursday:
- Broadcom (AVGO): +4% on strong earnings.
- Lululemon (LULU): -13% after revenue miss and guidance cut.
Investor Takeaways
Key Report Ahead
Friday’s jobs data could decide the Fed’s September policy move.our first post. Edit or delete it, then start writing!
Weaker Labor Data = Higher Rate-Cut Odds
Cooling job growth is pushing the Fed toward policy easing.
Short-Term Boost, Long-Term Risks
While markets cheer lower rates now, a sharp slowdown could hurt the economy later.
Hi, this is a comment.
To get started with moderating, editing, and deleting comments, please visit the Comments screen in the dashboard.
Commenter avatars come from Gravatar.