After Hours Report

The major averages finished a volatile week little changed as a sharp rise in oil prices and shifting expectations for monetary policy offset strength in semiconductor stocks and a midweek rebound. The S&P 500 gained 0.1% and the Nasdaq Composite rose 0.4%, while the DJIA slipped 0.3%. The Russell 2000 (+0.1%) and S&P Mid Cap 400 (+0.2%) also finished near their flatlines.

Oil was one of the week's most important influences. WTI crude surged roughly 10% as renewed hostilities between the U.S. and Iran and concerns surrounding the Strait of Hormuz pushed prices above $90 per barrel. The move pressured equities during the first two sessions of the week and helped the energy sector gain 2.3%, making it the strongest-performing S&P 500 sector.

Stocks began recovering Wednesday as oil prices and Treasury yields stabilized, and the rebound accelerated Thursday as easing yields and comments from Fed Governor Christopher Waller reduced some concern surrounding a September rate hike. Those gains were broad enough to erase most of the early-week losses, although Friday's stronger-than-expected Employment Report shifted rate expectations back in a more hawkish direction and interrupted the rebound. The 10-year note yield ultimately rose six basis points for the week to 4.78%.

Technology provided another important source of support, although performance within the sector was sharply divided. The information technology sector gained 1.1%, helped by a 2.3% advance in the PHLX Semiconductor Index. NVIDIA, Dell, and other AI-related names contributed to semiconductor strength throughout the week. Software stocks moved decisively in the opposite direction, however, leaving the iShares Expanded Tech-Software ETF down 4.5% following several pronounced post-earnings declines.

Outside technology and energy, performance was considerably weaker. The consumer discretionary sector fell 2.1%, while materials (-1.6%), real estate (-1.3%), and industrials (-1.1%) sectors also posted sizable losses. The financials sector finished unchanged, and the Vanguard Mega Cap Growth ETF edged up just 0.1%, reflecting the relatively limited overall progress among the market's largest stocks.

Overall, the market showed little net movement despite substantial volatility beneath the surface. Rising oil prices and Treasury yields pressured stocks early in the week before greater stability in both helped fuel a broad rebound, while Friday's employment data renewed concerns about another Fed rate hike. Strength in semiconductor and energy stocks ultimately helped offset weakness across software and several economically sensitive areas, leaving the major averages close to where they began the week.

• Nasdaq Composite: +0.4% week-to-date
• S&P Mid Cap 400: +0.2% week-to-date
• Russell 2000: +0.1% week-to-date
• S&P 500: +0.1% week-to-date
• DJIA: -0.3% week-to-date

Monday: 

The major averages finished a broadly weaker Monday off their session lows, as late buying interest in technology stocks helped the S&P 500 (-0.3%) and Nasdaq Composite (-0.1%) recover some of their earlier losses. The DJIA (-0.7%) underperformed as rising oil prices and renewed hostilities between the U.S. and Iran weighed on sentiment throughout the session.

Crude oil was a central influence on today's action, settling $2.45 higher (+2.9%) at $85.83 per barrel and recovering a large portion of last week's decline. The move followed the latest hostilities between the U.S. and Iran, while Axios reported during the afternoon that President Trump is considering limited strikes aimed at preventing Iran from reconstituting its capabilities to attack ships in the Strait of Hormuz. The energy sector (+2.1%) was the clear beneficiary, finishing comfortably atop the sector standings.

Most of the market moved in the opposite direction, however, with the Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.5%) also ending lower.

Technology stocks provided an important source of support, particularly late in the session. The information technology sector (+0.3%) moved into positive territory as semiconductor stocks attracted buying interest shortly before the close, helping pull the major averages off their session lows. The PHLX Semiconductor Index (+0.6%) finished modestly higher and ended August with a 2.0% gain despite considerable volatility throughout the month. NVIDIA (NVDA 220.50, +2.95, +1.36%) was among today's semiconductor standouts after last week's earnings-driven surge.

Elsewhere in the technology sector, CrowdStrike (CRWD 231.00, +12.60, +5.77%) extended its own post-earnings advance to finish as the top-performing S&P 500 component.

Mega-cap performance was less encouraging overall, leaving the Vanguard Mega Cap Growth ETF down 0.2% as most of the Magnificent Seven finished lower. The communication services sector (-1.6%) was among the weakest groups as Alphabet (GOOG 335.41, -7.47, -2.18%) lagged, while Amazon (AMZN 259.77, -6.66, -2.50%) pressured the consumer discretionary sector (-0.7%) after The Wall Street Journal reported that the FTC plans to file a lawsuit against the company. Tesla (TSLA 368.01, +19.26, +5.52%) bucked the broader mega-cap weakness, rallying sharply and climbing back above its 50-day moving average (359.81) amid enthusiasm surrounding autonomous driving and energy-storage developments. Elon Musk's comments outlining an aggressive goal of reaching 100 GW of annual solar production also contributed to the positive sentiment surrounding the stock.

Selling pressure also remained pronounced in several other areas. The utilities (-1.2%) and industrials (-1.2%) sectors finished with sizable losses. Edison (EIX 53.96, -16.21, -23.10%) and PG&E (PCG 13.28, -3.32, -20.00%) continued to weigh heavily on the utilities sector following developments surrounding California wildfire legislation, while weakness across military contractors pressured the industrials sector. Howmet Aerospace (HWM 244.91, -19.94, -7.53%) was a notable laggard after Elon Musk said in-house SpaceX (SPCX 143.75, +2.25, +1.59%) casting of natural-gas turbine blades and vanes could accelerate turbine deployment by up to 18 months.

In other corporate news, Aon (AON 321.34, -34.06, -9.58%) fell sharply after agreeing to acquire USI Insurance Services for $17.0 billion in cash.

Ultimately, Monday's session featured broad underlying weakness as the renewed rise in crude oil prices and U.S.-Iran tensions weighed on sentiment. The energy sector was the clear exception, while late strength in semiconductors and other technology stocks helped the major averages recover from their lows and limited the losses at the index level. Despite ending the final trading day of August on a lower note, the major averages still secured solid gains for the month.

U.S. Treasuries ended August with losses in most tenors, producing fresh 2026 highs in yields on 3-year, 5-year, 7-year, and 10-year notes. The 2- year note yield finished unchanged at 4.35% (+6 basis points in August), and the 10-year note yield settled up four basis points to 4.76% (+1 basis point in August). 

There was no economic data of note. 

Tuesday:

The major averages finished broadly lower on Tuesday as a sharp surge in oil prices, escalating U.S.-Iran hostilities, and weakness across technology and other growth stocks weighed on the market. The S&P 500 (-0.7%), Nasdaq Composite (-1.0%), and DJIA (-0.8%) all ended with sizable losses, while the Russell 2000 (-1.2%) and S&P Mid Cap 400 (-1.1%) also struggled.

Crude oil was the central influence on today's action, extending its intraday surge to settle $4.45 higher (+5.2%) at $90.28 per barrel. Oil prices had already been sharply higher during the morning before the geopolitical situation escalated around midday, when U.S. Central Command confirmed that U.S. forces had begun striking Islamic Revolutionary Guard Corps targets in Iran following recent attempted attacks against commercial shipping in the Strait of Hormuz and American service members deployed to the region.

President Trump later said via Truth Social that the U.S. was conducting "large and powerful" strikes against Iranian targets near the Strait of Hormuz in retaliation for Iran's attack on Jordan. He also warned that any Iranian retaliation would be met with strikes at a "much harder and higher level" and suggested an even larger attack remains an option. Iran issued threats of retaliation of its own, with Axios reporter Barak Ravid quoting the IRGC as saying, "A severe punishment awaits the aggressors. The United States will regret its latest attacks."

The escalation erased an earlier attempt by the major averages to recover from their opening losses and kept pressure on equities through the afternoon. Higher Treasury yields provided an additional headwind, particularly for technology and other growth-oriented stocks, while increased expectations for a rate hike at this month's FOMC meeting also remained in focus.

The information technology sector (-1.0%) finished among the weakest performers as both semiconductor and software stocks came under pressure. The PHLX Semiconductor Index fell 2.1%, while the iShares Expanded Tech-Software Sector ETF dropped 3.5%, with packaged software names among the day's notable laggards. Apple (AAPL 325.13, +8.28, +2.61%) was an important exception, advancing as John Ternus officially took over as CEO and helping offset some of the broader technology weakness.

Several technology names also faced pronounced selling ahead of earnings reports after the close. Dell (DELL 424.82, -31.18, -6.84%) retreated sharply ahead of its Q2 report, with expectations elevated following the company's strong Q1 results and outlook, while Palo Alto Networks (PANW 362.09, -20.04, -5.24%) also lagged ahead of its fiscal Q4 report.

The consumer discretionary sector (-1.9%) finished at the bottom of the sector standings amid broad pressure on oil- and rate-sensitive names. Amazon (AMZN 254.92, -4.85, -1.87%) and Tesla (TSLA 356.09, -11.86, -3.22%) were notable mega-cap laggards, contributing to the broader weakness across growth stocks. The Vanguard Mega Cap Growth ETF finished 1.0% lower.

The industrials sector (-1.4%) was another major source of weakness as the surge in oil prices pressured many of its components. Axon (AXON 518.30, -48.26, -8.52%) finished as the worst-performing S&P 500 component. The materials (-1.4%) and financials (-0.9%) sectors also posted sizable losses as cyclical stocks joined growth names in underperforming.

The other side of today's rotation was evident across energy and defensive areas of the market. The energy sector (+1.5%) finished comfortably higher as crude oil surged above $90 per barrel, while the utilities (+0.7%), health care (+0.6%), and consumer staples (+0.2%) sectors also ended in positive territory as investors sought more defensive positions.

Edison (EIX 58.79, +4.81, +8.91%) and PG&E (PCG 14.06, +0.78, +5.92%) were notable standouts in the utilities sector after KCRA News reporter Ashley Zavala reported that the California Assembly will kill the wildfire liability plan agreed to by lawmakers and Gov. Newsom just days ago. The proposed plan had been a source of concern for PG&E and Southern California Edison because it would not have allowed the utilities to shift future wildfire costs to insurance.

Meanwhile, Moderna (MRNA 154.27, +13.93, +9.93%) continued to experience sharp swings following its recent surge on positive melanoma-vaccine results.

Ultimately, Tuesday's session was dominated by the sharp rise in crude oil and escalating U.S.-Iran hostilities. The midday U.S. strikes and subsequent threats of further escalation from both sides pushed crude above $90 per barrel and reinforced the pressure already facing equities from elevated Treasury yields. Energy and defensive sectors benefited from the resulting rotation, but broad weakness across technology, cyclical stocks, and smaller companies left the major averages firmly lower to begin what has historically been one of the weakest months for the stock market.

U.S. Treasuries tried to fight off early weakness on Tuesday but could not escape selling pressure that sent yields on 10-year note and shorter tenors to fresh highs for the year. The 2-year note yield settled up four basis points to 4.39%, and the 10-year note yield settled up four basis points to 4.80%. 

Reviewing today's data:

• August S&P Global U.S. Manufacturing PMI - Final 53.9; Prior 53.2
• July Construction Spending -0.5% (Briefing.com consensus 0.2%); Prior was revised to 0.0% from -0.1%
  • The key takeaway from the report is the weakness in the residential sector and particularly in new single-family construction, which is being tested by higher financing costs.
• August ISM Manufacturing Index 54.6% (Briefing.com consensus 55.3%); Prior 55.6%
  • The key takeaway from the report is that slower growth was indicated across most report categories. The notable exception was prices, which increased at the same pace as the prior month.
• July JOLTs - Job Openings 7.271 mln (Briefing.com consensus 7.390 mln); Prior was revised to 7.182 mln from 7.359 ml

Wednesday:

The stock market enjoyed a broad rebound in the midweek session after rising oil prices and Treasury yields pressured equities through the first two sessions of the week. While both remain elevated, relative stability in crude oil and yields today provided some relief for equities, helping the S&P 500 (+0.5%), Nasdaq Composite (+0.5%), and DJIA (+0.6%) recoup a portion of their recent losses. The Russell 2000 (+1.2%) and S&P Mid Cap 400 (+0.7%) posted even stronger gains.

WTI crude settled $0.68 higher (+0.8%) at $90.96 per barrel, remaining below its overnight high near $92, while the 10-year note yield finished unchanged at 4.80% after reaching 4.82% overnight. The relatively contained moves in both stood in contrast to the sharper increases that pressured equities earlier in the week, helping create a more supportive backdrop for Wednesday's rebound.

The strength was widespread, with ten of the 11 S&P 500 sectors finishing higher. The S&P 500 Equal Weighted Index (+0.6%) matched the gain in its market-cap-weighted counterpart, while the outperformance of the Russell 2000 provided another indication of solid participation beyond the largest stocks.

Several cyclical areas were among the beneficiaries of the broader rebound. The materials sector (+1.5%) finished atop the sector standings, supported by strength in steel names such as Steel Dynamics (STLD 247.64, +13.55, +5.79%) amid some focus on U.S.-Canada trade negotiations, while other metals names also outperformed.

The financials sector (+0.8%) also participated in the advance, with several of its largest components contributing to the outperformance of the DJIA.

Meanwhile, the communication services sector (+1.3%) was another source of strength, with Charter Comm (CHTR 158.97, +12.78, +8.74%) and Reddit (RDDT 158.11, +13.47, +9.31%) among the day's stronger S&P 500 performers and the sector's mega-cap components also contributing to the advance.

The information technology sector (+0.3%) finished with a modest gain despite a sharp divide beneath the surface. Semiconductor stocks provided support, lifting the PHLX Semiconductor Index 0.5% as NVIDIA (NVDA 224.40, +6.96, +3.20%) posted a solid gain. Attention now turns to Broadcom's (AVGO 367.24, -2.44, -0.66%) earnings report after the close, with investors looking for further evidence that strong AI demand can support the company's ambitious growth expectations.

Dell (DELL 492.00, +67.00, +15.76%) was another notable technology winner following its better-than-expected earnings report. The company delivered a sizable earnings beat and raised its FY27 AI-Optimized Servers revenue outlook to $74 billion from $60 billion, reinforcing expectations for continued strength in AI infrastructure demand. The results also provided a positive read-through for Hewlett Packard Enterprise (HPE 51.86, +0.98, +1.94%), which moved higher ahead of its own earnings report after the close.

Software stocks moved sharply in the opposite direction, leaving the iShares Expanded Tech-Software Sector ETF down 2.6% and extending what has already been a difficult week for the group. Palo Alto Networks (PANW 328.39, -33.70, -9.31%) fell sharply despite beating Q4 expectations and issuing an above-consensus FY27 outlook, with its negative reaction appearing more reflective of elevated expectations than a meaningful deterioration in underlying execution. MongoDB (MDB 375.40, -58.81, -13.54%) also struggled following its earnings report, while Palantir Technologies (PLTR 169.44, -10.48, -5.83%) and CrowdStrike (CRWD 203.42, -11.65, -5.42%) added to the broader software weakness.

The real estate sector (-0.8%) was the lone S&P 500 sector to finish in negative territory, providing one of the few areas of weakness in an otherwise broadly positive session.

On the policy front, the Federal Reserve's Beige Book indicated that economic activity continued to expand modestly since early July, with the outlook remaining positive despite uncertainty surrounding higher energy prices, policy developments, and international conflicts. The 10-year note yield showed little reaction to the report and remained at 4.80%.

Ultimately, Wednesday's rebound provided some relief following the weakness that began the week. The absence of another sharp increase in crude oil or Treasury yields allowed buying interest to broaden across nearly the entire sector lineup, with smaller-cap stocks also participating in the advance. Persistent software weakness remained a notable blemish, but strength across several other areas helped the market recover a portion of its recent losses.

U.S. Treasuries finished Wednesday near their unchanged levels, but the flat finish masked a brief morning dip that sent yields on the 10-year note and shorter tenors to fresh highs for the year. The 2-year note yield finished unchanged at 4.39%, and the 10-year note yield finished unchanged at 4.80%. 

Reviewing today's data:

• Weekly MBA Mortgage Applications Index 0.8%; Prior -1.0%
• August ADP Employment Change 38K (Briefing.com consensus 47K); Prior was revised to 46K from 44K
• July Factory Orders 0.9% (Briefing.com consensus 0.6%); Prior was revised to -0.2% from -0.3%
  • The key takeaway from the report is that factory orders were running at a good clip in July for durable and nondurable goods. Although business spending was flat, that was likely just a normal slowdown from the solid increases registered in May and June.

Thursday:

The major averages extended their rebound on Thursday, with easing Treasury yields providing a more favorable backdrop for equities after their sharp rise contributed to the market's early-week weakness. The S&P 500 (+1.1%), Nasdaq Composite (+1.4%), and DJIA (+1.2%) all finished with sizable gains, while the Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.9%) also advanced.

The 10-year note yield fell three basis points to 4.76%, continuing its retreat from the elevated levels reached earlier in the week. The move followed comments from Fed Governor Christopher Waller (voting FOMC member) that reduced some concern surrounding the possibility of another rate hike at the September FOMC meeting. While Mr. Waller acknowledged that inflation remains meaningfully above the Fed's 2.00% target and left open the possibility of another increase if progress stalls, investors focused more heavily on his observation that recent data have shown encouraging signs of disinflation. The CME FedWatch Tool assigned a 49.6% probability to the Fed leaving rates unchanged in September, up from 36.8% yesterday.

Thursday's advance featured particularly strong participation from large-cap growth stocks, with the Vanguard Mega Cap Growth ETF rising 1.6%. That strength helped propel the consumer discretionary (+1.6%) and communication services (+1.5%) sectors toward the top of the standings, with Tesla (TSLA 376.36, +19.36, +5.42%) and Meta Platforms (META 610.68, +17.83, +3.01%) among the more notable contributors.

The financials sector (+1.6%) was another source of leadership. Major banking names participated in the advance, while Robinhood Markets (HOOD 124.72, +17.73, +16.57%) and Coinbase Global (COIN 192.70, +17.74, +10.14%) posted especially large gains alongside a sharp increase in Bitcoin that carried the cryptocurrency above $80,000.

Technology stocks also played a significant role in the broader advance, although performance beneath the surface remained uneven. The information technology sector (+1.3%) overcame early semiconductor weakness as software stocks staged a pronounced rebound from Wednesday's selloff. The iShares GS Software ETF advanced 3.4%, with Snowflake (SNOW 356.24, +50.40, +16.48%) surging following an impressive earnings beat and Microsoft (MSFT 510.12, +13.30, +2.68%) gaining after announcing a significant overhaul of its reporting structure.

Semiconductor stocks were a relative laggard for much of the session after the PHLX Semiconductor Index (+0.1%) fell more than 2% shortly after the open, largely due to Broadcom's (AVGO 357.16, -10.08, -2.74%) post-earnings decline. The group recovered considerably as the session progressed, however. Broadcom's weakness came despite better-than-expected Q3 earnings and revenue, as elevated expectations surrounding its AI business and Q4 outlook appeared to outweigh another solid report.

Elsewhere in the technology space, Dell (DELL 515.94, +23.74, +4.82%) extended its post-earnings momentum and reached a new all-time high, while Hewlett Packard Enterprise (HPE 54.44, +2.61, +5.03%) moved lower despite reporting a broad earnings beat and above-consensus Q4 guidance. Some consumer-related names were notable exceptions to the otherwise constructive action. Tyson Foods (TSN 51.77, -4.04, -7.24%) remained under pressure after lowering its FY26 revenue guidance, while The Campbell's Company (CPB 22.12, -1.66, -6.96%) fell following its earnings report and disappointing FY27 outlook.

Meanwhile, geopolitical developments remained relatively quiet compared with earlier in the week. WTI crude settled $0.39 higher (+0.4%) at $91.35 per barrel, with the modest increase doing little to disrupt the equity rally. The energy sector (-0.7%) finished with the widest loss, while the materials sector (-0.5%) also retreated.

Ultimately, Thursday's advance built meaningfully on Wednesday's rebound as easing Treasury yields removed some of the pressure that weighed on stocks earlier in the week. Strength across mega-cap stocks, software, financials, and most other areas of the market more than offset lingering weakness in select semiconductor and consumer names, leaving the major averages with modest week-to-date gains heading into Friday's session.

U.S. Treasuries climbed on Thursday, though they made little intraday progress, finishing near their starting levels. The 2-year note yield settled down six basis points to 4.33%, and the 10-year note yield settled three basis points to 4.76%. 

Reviewing today's data: 

• July Trade Balance -$88.6 bln (Briefing.com consensus -$89.6 bln); Prior was revised to -$71.2 bln from -$73.3 bln
  • The key takeaway from the report is that the widening deficit will be a drag on Q3 GDP growth estimates.
• Q2 Productivity -Rev. 1.4% (Briefing.com consensus 1.4%); Prior 1.4%, Q2 Unit Labor Costs-Rev. 1.2% (Briefing.com consensus 1.3%); Prior 1.3%
  • The key takeaway from the report is that the downtick in unit labor costs from the advance estimate helped keep inflation concerns in check.
• Weekly Initial Claims 206K (Briefing.com consensus 205K); Prior was revised to 204K from 203K, Weekly Continuing Claims 1.779 mln; Prior was revised to 1.771 mln from 1.778 mln
  • The key takeaway from the report is that the low level of initial jobless claims continues to connote a low-firing environment.
• August S&P Global U.S. Services PMI - Final 56.5; Prior 56.8
• August ISM Non-Manufacturing Index 55.4% (Briefing.com consensus 54.1%); Prior 54.1%
  • The key takeaway from the report is that it shows services organizations haven't seen any relief in the prices they are paying for materials and services. That invites the risk of pass-through to customers and sustained inflation issues.

Friday:

The major averages finished modestly lower on Friday as a stronger-than-expected August Employment Report increased expectations for a September rate hike, interrupting some of the positive momentum from Thursday's broad advance. The S&P 500 (-0.4%), Nasdaq Composite (-0.3%), and DJIA (-0.5%) ended in negative territory, while the Russell 2000 (+0.3%) and S&P Mid Cap 400 (+0.1%) bucked the broader weakness with modest gains.

The employment report showed stronger-than-expected payroll growth and a lower-than-expected unemployment rate, prompting a meaningful shift in expectations for the Fed's next policy move. The CME FedWatch Tool assigned roughly a 60% probability to a rate hike at the September FOMC meeting, up from about 50% yesterday. Cleveland Fed President Beth Hammack (voting FOMC member) added to the more hawkish policy backdrop, saying inflation remains too high, the labor market is stable, and current policy is not restrictive before concluding that "it's time to act."

Mega-cap stocks were mostly lower today, with the Vanguard Mega Cap Growth ETF finishing 0.5% lower. The consumer discretionary sector (-1.3%) was among the weakest performers as Tesla (TSLA 354.08, -22.28, -5.92%) gave back yesterday's rally and lululemon athletica (LULU 100.61, -21.16, -17.38%) plunged following its earnings report.

The communication services sector (-0.9%) also struggled amid weakness across some of its largest components, while the financials sector (-0.8%) was another notable laggard.

The information technology sector (+0.2%) managed to finish higher despite a pronounced split beneath the surface. Semiconductor stocks rallied sharply, lifting the PHLX Semiconductor Index 3.4%, while software stocks moved firmly in the opposite direction and left the iShares GS Software ETF down 2.2%. Adobe (ADBE 266.51, -19.24, -6.73%) was among the software laggards after naming a new CEO.

Memory stocks were particularly strong within the semiconductor group. Sandisk (SNDK 1740.00, +185.01, +11.90%) surged more than 10% to finish as one of the day's top gainers amid stronger DRAM and NAND pricing, robust server demand, broader strength across semiconductors, and a technical rebound from key moving averages.

Strength across semiconductor-related names also provided a boost to the industrials sector (+0.4%), which finished among the day's better-performing areas.

Separately, credit bureau and credit-scoring stocks were a notable pocket of weakness following comments from FHFA Director Bill Pulte regarding potential changes to the mortgage credit-scoring market. FICO tumbled after Mr. Pulte said Fannie Mae and Freddie Mac will allow all lenders to use VantageScore, increasing competition for Fair Isaac's (FICO 932.26, -186.67, -16.68%) mortgage-scoring business. Equifax (EFX 177.05, -12.04, -6.37%) and TransUnion (TRU 79.88, -5.04, -5.94%) also fell sharply after Mr. Pulte criticized credit reporting agencies over pricing and said he is considering a "bi-merge" system that would require mortgage lenders to pull two credit reports instead of three.

Meanwhile, WTI crude settled $0.15 higher (+0.2%) at $91.50 per barrel amid a relative lack of new developments surrounding the U.S.-Iran conflict. Crude gained roughly 10% for the week, with its sharp rise contributing to the equity market's weakness during the first half of the week.

Friday's modest decline ultimately left the major averages with a mixed finish to the week after a volatile stretch shaped by rising oil prices, elevated Treasury yields, and shifting expectations for monetary policy. Attention will remain firmly on the rate outlook next week, with the August Producer Price Index and Consumer Price Index providing the next major opportunities for expectations surrounding the September FOMC meeting to shift. The abbreviated week will be relatively light on the earnings front, although Oracle (ORCL 158.83, +4.79, +3.11%) reports after Thursday's close.

U.S. Treasuries finished the week on a lower note after a strong jobs report for August prompted a reversal from a modestly higher start. The 2-year note yield settled up five basis points to 4.38% (+3 basis points this week), and the 10-year note yield settled up two basis points to 4.78% (+6 basis points this week). 

Reviewing today's data:

• August Nonfarm Payrolls 162K (Briefing.com consensus 45K); Prior was revised to 21K from -23K, August Nonfarm Private Payrolls 127K (Briefing.com consensus 45K); Prior was revised to 71K from 30K, August Unemployment Rate 4.1% (Briefing.com consensus 4.2%); Prior 4.1%, August Average Hourly Earnings 0.3% (Briefing.com consensus 0.2%); Prior was revised to 0.2% from 0.1%, August Average Workweek 34.4 (Briefing.com consensus 34.3); Prior 34.3
  • The quick takeaway by the market is that this report just might persuade the Fed to raise rates at its September FOMC meeting. The key takeaway, though, is that a rate hike in September is not assured by this August data. To that end, the 3-month average for total nonfarm payrolls was still just a modest 71,000, there was a moderation in average hourly earnings growth to 3.1% from 3.2% on a year-over-year basis, and persons unemployed for 27 weeks or more accounted for 27.0% of the unemployed versus 25.5% in July.