U.S. stocks rebounded on September 2, with the S&P 500 ending a three-session losing streak. The index gained 0.5% to close at 7,666.60 points; the Dow Jones Industrial Average rose 0.6%, and the Nasdaq Composite increased 0.5%. Strengthening tech stocks and a temporary stabilization in bond yields provided some breathing room for previously pressured risk assets.
AI Demand Revives Tech Stocks
After Dell reported robust quarterly results and raised its full-year revenue forecast, its stock surged 15.8%, becoming the strongest performer in the S&P 500. The company's data on AI server orders and demand reaffirmed to the market that corporate investment in AI infrastructure is still advancing.
This signal also lifted the semiconductor sector, with Nvidia rising 3.2% and Micron gaining 2.4%. However, the AI theme was not universally positive: Palo Alto Networks' earnings exceeded expectations, yet its stock still fell 9.3%, as valuations and company guidance continue to impact individual stock performance.
10-Year Treasury Yield Remains Near 4.78%
On the day, the 10-year Treasury yield dipped slightly from 4.79% to 4.78%, while the 2-year yield retreated from 4.39% to 4.37%. Although the moves were modest, they were enough to alleviate short-term valuation pressure on growth stocks. At the beginning of the year, these yields were as low as approximately 4.20% and 3.50%, respectively, indicating that current financing costs remain significantly higher.
While interest rate hikes help curb inflation, they also further increase borrowing costs for businesses and consumers. For tech companies with high valuations and substantial capital expenditure, renewed upward movement in yields remains one of the most direct pressures.
Oil Prices Keep Inflation Risks Alive
Brent crude rose 1% on the day to close at $95.63 per barrel; U.S. crude gained 0.9% to $91.01. Geopolitical conflicts and transport risks in the Strait of Hormuz continue to push energy prices higher. Rising oil prices feed into inflation through gasoline, transportation, and commodity costs, thereby reinforcing market concerns that the Federal Reserve will maintain its policy tightening stance.
Meanwhile, the ADP survey showed a slowdown in U.S. private-sector job growth in August. The market is still awaiting Friday's official jobs report and subsequent inflation data. This presents the Fed with a more complex balancing act: inflation necessitates continued tightness, but weakening employment increases the risk that rate hikes could harm the economy.
One-Day Rebound Awaits Confirmation from Macro Data
The S&P 500 ending its three-day slide indicates there is still buying interest at lower levels, and AI spending continues to provide fundamental support for the tech sector. However, this rebound occurred almost simultaneously with the temporary stabilization in the bond market, suggesting that interest rate pressures have not disappeared.
If Friday's jobs data reignites expectations for further rate hikes, the gains recouped by tech stocks on the day could still be given back; whether the rebound can broaden to more sectors will also influence the index's subsequent performance.
