US close: Wall Street rallies as easing yields, upbeat data lift sentiment

3rd Sep 2026 23:06

(Sharecast News) - Major indices closed sharply higher on Thursday after snapping a three‑day losing streak in the prior session, with easing Treasury yields offering some relief following renewed fighting between the US and Iran.

At the close, the Dow Jones Industrial Average was up 1.18% at 53,686.11, while the S&P 500 advanced 1.06% to 7,747.71 and the Nasdaq Composite saw out the session 1.40% firmer at 26,584.06.

The Dow closed 624.16 points higher on Thursday, extending gains recorded in the previous session, as yields moved lower across the curve as traders digested a number of data points after a sharp global bond sell‑off. The benchmark 10‑year Treasury yield was down more than one basis point at 4.773%, while the 30‑year yield was just short of one basis point lower at 5.251%. The two‑year yield, which is more sensitive to Federal Reserve policy expectations, was nearly four basis points lower at 4.351%.

Oil prices were also in focus as investors assessed the latest escalation in Middle East tensions, with Brent crude for November delivery up 0.21% at $95.83 a barrel, while West Texas Intermediate for October advaned 0.32% at $91.30 a barrel after Kuwait's army said it was confronting hostile missile and drone attacks from Iran, a day after Donald Trump remarked that renewed hostilities between Washington and Tehran would not last "too long".

On the macro front, US employers announced 52,881 job cuts in August, according to Challenger, Gray & Christmas, up from 33,429 in July but still 38.5% lower than a year earlier, marking the lowest August total since 2022. Consumer products led with 10,057 cuts, driven by reductions at Procter & Gamble and Estée Lauder, while food producers followed with 7,982 cuts, with Tyson accounting for nearly a third amid a historic cattle shortage. Year-to-date, technology remained the largest contributor with 155,126 cuts so far in 2026, followed by transportation with 42,279, health care and products with 35,637, consumer products with 28,574, and services with 26,778.

Elsewhere, Americans lined up for unemployment benefits at an accelerated pace in the week ended 29 August, according to the Labor Department, extended recent resilience in the labour market despite an unexpected contraction in payrolls. Initial jobless claims rose by 2,000 to 206,000, broadly in line with expectations of 205,000 and in keeping with a recent run of low claim counts since hitting an almost 60-year low of 189,000 in mid July. Continuing claims rose by 8,000 week-on-weel to 1.77m in the earlier period, while the four-week moving average, which aims to strip out week-to-week volatility, came in at 207,250, an increase of 1,500 from the prior week.

On another note, the US trade deficit widened in July as exports fell and imports rose, according to the Bureau of Economic Analysis, with the goods and services gap increasing to $88.6bn after a sharp rise in the goods deficit and a small uptick in the services surplus. Exports dropped to $310.7bn, down $6.6bn from June, driven by lower shipments of industrial supplies, crude oil, non‑monetary gold and computers, partly offset by higher capital goods, consumer goods and pharmaceuticals. Imports, on the other hand, climbed to $399.3bn, up $10.8bn, led by strong gains in capital goods, computers, accessories and semiconductors, while industrial supplies and crude oil declined. Year‑to‑date, the overall deficit narrowed 29.6% to $188.4bn as exports rose 12% and imports increased 1.9%.

Moving on, US labour productivity picked up in the second quarter, with non‑farm productivity rising at an unrevised annualised rate of 1.4%, according to the Bureau of Labor Statistics, helping to keep labour costs contained after a 0.8% increase in the first quarter. Productivity was up 2.2% year‑on‑year, with economists and policymakers expecting wider adoption of artificial intelligence to support future gains and help restrain inflation. Unit labour costs rose at a downwardly revised 1.2% pace, compared with the previously reported 1.3%, while labour costs were 1.4% higher than a year earlier.

Still on data, S&P Global's services purchasing managers index rose to 56.5 in August from 54.6 in July, marking the strongest expansion in private sector activity since late 2020, despite being a downward revision from preliminary estimates, while S&P's composite PMI held at 56 in August, its highest level in more than four years and up from 54.5 in July, signalling a third straight month of accelerating private sector growth.

Finally, the Institute for Supply Management's manufacturing PMI expanded for an eighth straight month in August, easing to 54.6 from 55.6, but still signalling solid growth as new orders, production and employment all remained in expansion territory. Supplier deliveries slowed further, inventories softened and price pressures stayed elevated, while sentiment was mixed amid concerns over pricing volatility, the Iran conflict, longer lead times and tariffs. Most major industries continued to grow, with five of the six largest sectors expanding and only wood products and chemicals reporting contraction.

In the corporate space, Victoria's Secret said second‑quarter net sales rose ten percent to $1.611bn, near the top end of its guidance, with operating income increasing to $257m and adjusted operating income of $124m coming in ahead of expectations, prompting the retailer to raise its full‑year 2026 net sales and adjusted operating income guidance, while Campbell's posted weaker fourth‑quarter and full‑year results, with sales, underlying earnings and adjusted earnings per share all coming in lower year-on-year, but raised its FY27 guidance, targeting $500m in cost savings by 2030 and resetting its dividend to speed up debt reduction.

After the close, Lululemon shares tumbled after the retailer posted another weak quarter, with revenue down 4% and comparable sales off 9%, prompting a further cut to its full‑year outlook, while DocuSign lifted its full‑year revenue guidance after quarterly earnings and sales topped forecasts, with adjusted EPS of $1.16 and revenues up 9.4% to $875.7m.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $91.67 3.65%

Goldman Sachs Group Inc. (GS) $1,037.93 3.34%

Salesforce.Com Inc. (CRM) $264.43 2.92%

Microsoft Corp. (MSFT) $510.12 2.81%

Travelers Company Inc. (TRV) $374.34 2.23%

JP Morgan Chase & Co. (JPM) $362.06 1.64%

Nike Inc. (NKE) $38.77 1.39%

International Business Machines Corporation (CDI) (IBM) $234.71 1.30%

Johnson & Johnson (JNJ) $278.43 1.17%

Caterpillar Inc. (CAT) $800.14 0.99%

Dow Jones - Fallers

Dow Chemical Co. (DOW) $30.36 -2.94%

Cisco Systems Inc. (CSCO) $108.61 -1.53%

Walt Disney Co. (DIS) $107.16 -0.77%

McDonald's Corp. (MCD) $259.63 -0.51%

Procter & Gamble Co. (PG) $146.92 -0.49%

Chevron Corp. (CVX) $211.32 -0.21%

3M Co. (MMM) $168.31 -0.17%

Home Depot Inc. (HD) $318.07 -0.14%

American Express Co. (AXP) $329.82 -0.05%

S&P 500 - Risers

Paypal Holdings Inc (PYPL) $56.82 7.92%

Principal Financial Group Inc (PFG) $118.51 7.71%

Illumina Inc. (ILMN) $221.66 6.97%

Skyworks Solutions Inc. (SWKS) $71.50 6.22%

Oracle Corp. (ORCL) $154.04 5.69%

Nektar Therapeutics (NKTR) $76.37 5.66%

DENTSPLY Sirona Inc. (XRAY) $11.43 5.10%

Hewlett Packard Enterprise (HPE) $54.44 5.05%

CBRE Group Inc (CBRE) $148.74 4.70%

Gartner Inc. (IT) $195.46 4.66%

S&P 500 - Fallers

Amphenol Corp. (APH) $82.07 -48.73%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Tyson Foods Inc. (TSN) $51.76 -7.26%

Helmerich & Payne Inc. (HP) $45.02 -5.50%

Albemarle Corp. (ALB) $132.16 -4.06%

Lamb Weston Holdings, Inc. (LW) $50.44 -3.76%

Autodesk Inc. (ADSK) $237.52 -3.58%

Equity Residential (EQR) $63.66 -3.50%

ConAgra Brands Inc (CAG) $15.62 -3.46%

General Mills Inc. (GIS) $39.26 -3.25%

Nasdaq 100 - Risers

Paypal Holdings Inc (PYPL) $56.82 7.92%

Illumina Inc. (ILMN) $221.66 6.97%

Skyworks Solutions Inc. (SWKS) $71.50 6.22%

Tesla Inc (TSLA) $376.36 5.11%

DENTSPLY Sirona Inc. (XRAY) $11.43 5.10%

Gen Digital Inc. (GEN) $31.33 4.57%

Meta Platforms Inc. (META) $610.68 4.49%

Vodafone Group Plc ADS (VOD) $16.58 4.21%

Nvidia Corp. (NVDA) $228.45 4.09%

Intel Corp. (INTC) $91.67 3.65%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Trip.com Group Limited (TCOM) $41.40 -5.89%

Autodesk Inc. (ADSK) $237.52 -3.58%

Idexx Laboratories Inc. (IDXX) $529.29 -3.07%

Broadcom Inc. (AVGO) $357.16 -2.60%

Kraft Heinz Co. (KHC) $25.42 -2.46%

Cadence Design Systems Inc. (CDNS) $304.88 -2.43%

NetEase Inc. Ads (NTES) $117.05 -2.31%

Monster Beverage Corp (MNST) $44.08 -1.74%

Cisco Systems Inc. (CSCO) $108.61 -1.53%