Market Update: August 31 – September 5, 2026
The U.S. market this week (August 31st – September 5th) were driven by a unique combination of rate hike fear, crude oil fluctuations, and a rebound in technology and semiconductors.
August 31st saw a close to a strong month for the market, with the S&P 500, up 2.5% and the Dow Jones up by around 1.0%. On the day, the market saw a small slip. Amazon (NYSE: AMZN), however, saw a 3% fall in share price due to a lawsuit filed by the FTC over manipulation of advertisement prices. Capping off notable losses on the day, however, were PG&E (NYSE: PCG) and Edison International (NYSE: EIX), who saw drops in share price of 19% and 22% respectively following California state legislation which omitted liability protection for utilities against wildfire insurance claims.
Setting the tone for the rest of the week, however, would be crude oil spikes and treasury rate fear. Driven by renewed U.S. military strikes against Iran, crude oil hit $88 per barrel on Monday, and then $94 per barrel the following day. Correspondingly the energy sector jumped 1.54% with crude oil prices. However, U.S. 10-Year Treasury yields climbed to 4.79%, the highest level since 2025. Inflation fear caused a significant downturn in the technology sector, falling 1.32% by end of day September 1st. Go Pro (NYSE: GPRO), however, saw a 50% jump in stock price following an announcement of their $285 million merger with Starman Optical, allowing Go Pro to break into A.I. optics for its consumer technology.
September 2nd and 3rd saw a small market rebound, as crude oil topped out around $95 per barrel and treasury rates stopped climbed. Fed Governor Chris Waller indicated support for holding rates steady, reducing inflation fear. The technology sector rallied NVIDA (NYSE: NVDA), climbing 3% on the day. Dell (NYSE: DELL) reported incredible Q2 2026 earnings, a 58% growth in revenue and a 203% increase in year-over-year EPS driven by A.I. demand. Dell share price jumped 15.76% post earnings call.
The week closed with a strong monthly job report on September 4th, with 162,000 jobs added in the month of August, overperforming projections. This was great news for Wall Street, bringing optimism around rate hikes concerns. The S&P 500 closed around $7,718.60, marginally up, and the Dow Jones closed around 53,414.25, marginally down. Strong tech earnings and momentum helped to counteract crude oil shocks and inflation fear, keeping major indexes in the green.
Next week will be a defining time for the U.S. market in September; 4-day week for markets following Labor Day, Oracle (NYSE: ORCL) earnings report, Apple product showcase, and inflationary reports from both the U.S. and European Central Bank. These catalysts, as well as the ever-fluctuating Iran-U.S. conflict, growing inflation concerns, and routine overperformance from technology and semiconductor stocks keep the condition of the market inconclusive
