Weekly Market Performance — September 4, 2026

LPL Research provides its Weekly Market Performance for the week of August 31, 2026. Stocks entered September on a cautious note as investors balanced geopolitical tensions and shifting interest rate expectations. U.S. equities finished little changed for the week as stronger-than-expected payroll data and rising Treasury yields kept risk appetite in check. Globally, stocks were pressured by higher crude prices and rate hike speculation from central bankers in the U.S. and international markets. Meanwhile, renewed kinetic activity in the Mideast drove crude oil above $90 per barrel, while the yen surged. 

Stock Index Performance

S&P 500 Index Sectors

Fixed Income and Commodities

Source: LPL Research, Bloomberg 9/4/26 @ 3:00 p.m. ET
Disclosures: Indexes are unmanaged and cannot be invested in directly.

U.S. and International Equities

U.S. Equities: Stocks kicked off September on a mixed note, with the S&P 500 ending virtually flat after snapping a two-month losing streak with the conclusion of August trading. Risk appetite was muted early in the week amid the latest bout of kinetic activity in the Persian Gulf, fresh energy shipping disruptions, and a continuation of recent upward pressure on Treasury yields. But trading grew choppy over the final two days amid fluctuating rate hike expectations. Market expectations for the Federal Reserve (Fed) to tighten monetary policy for the first time since 2023 eased after Fed Governor Waller stated he would support keeping rates steady if data pointed to disinflation traction. Nonetheless, after posting their best day in a month on the dovish-tilted remarks, a stronger-than-expected August payrolls report bolstered rate-hike expectations again and led stocks to trim gains back near last Friday’s close.  

Broadly cautious trading was also due in part to market chatter surrounding seasonality during the historically weak month of September; however, some upbeat earnings takeaways around AI compute demand from Dell (DELL) and Broadcom (AVGO) and a strong Thursday for mega caps helped pad major averages.   

International Equities: European stocks capped a slight monthly advance on Monday but printed a measured loss for the last five days. As has been the case for much of this year, a weekly advance in crude prices was a contributor to soft sentiment across the Eurozone. Simultaneously, rate hike speculation across the pond as well as on the homefront was a headwind, with accelerating inflation in Germany and Eurozone consumer prices reaching their highest level in nearly three years among the latest data points reinforcing arguments for tighter policy. The U.K. outperformed in a holiday shortened week, ending flat after Gilts led a bounce in European bonds late in the week. 

Asian equities ended mostly lower. Japanese markets drew attention this week with surprising yen strength and intervention speculation among focal points, which combined with 10-year Japanese government bond yields reaching 30-year highs to weigh on stocks. Financials were a bright spot amid rate hike expectations and some positive Wall Street commentary. Taiwan was the standout on the upside, buoyed by a Tuesday rally spurred by NVIDIA (NVDA) unveiling a multi-billion dollar investment in chipmaker MediaTek. Elsewhere, South Korea dropped while Hong Kong was among outperformers — extending its recent trend of outperforming amid weakness in Korea. Mainland China declined. 

Fixed Income, Currency, and Commodity Markets

Fixed Income: Core bonds, as measured by the Bloomberg Aggregate Index (Agg), traded lower this week despite yields temporarily feeling some reprieve from recent upward pressure. Market noise and headlines remained in high supply with rates markets continuing to face notable swings between higher oil prices, rate hike jitters, and a strong payrolls print, and — on the other side of the coin — some dovish leaning Fedspeak. Meanwhile, corporate credit markets remain quiet while AI-linked issuance remains the dominant technical. Hyperscalers and the broader compute stack keep coming to market in size, and the AA names that have already printed tens of billions this year are the ones showing the most spread indigestion. Markets continue to treat investment-grade (IG) names as a sector-specific supply event rather than a market-wide repricing. 

CCC-rated credit spreads kept grinding wider this week, but this is not a broader risk-off signal, in our view. It is the market finally separating balance sheets that can refinance a 2021 coupon at today’s rates from those that likely cannot. Demand from yield buyers is keeping spreads tight, and as cited by Fed Chair Kevin Warsh, credit and loan markets showing few signs of policy restraint as evidence that conditions are not tight.  

Issuance is already leaning into September with pre-Labor Day volume the strongest in years. Issuers that can issue debt now are doing it before the next hyperscaler wave and before another 25 basis points of policy risk gets fully priced. Concessions have been modest, and demand remains solid, keeping spreads tight. Indexes paint a good picture of the broader landscape, but the real signal is the growing pile of AA-rated paper trading through BBB curves and the CCC/B multiple sitting at multi-year extremes. The market is telling you the average credit is fine, but the tails may not be.  

Commodities and Currencies: The broader commodity complex rose this week. Reports of Iranian mines in the Strait of Hormuz and the first airstrikes since July flared up U.S.-Iran tensions, sending West Texas Intermediate (WTI) crude oil futures on track for a sharp weekly gain. Both WTI and Brent contracts traded above $90 per barrel Friday afternoon as the return to arms brought shipping concerns back to center stage as commodity vessels transiting the Strait fell to six, down from a 10-day average of 13 — with both numbers well below pre-conflict norms. Reports of potentially reduced Russian production were also bullish for prices. Outside of energy, gold swung between gains and losses before ultimately trading below the weekly flatline after strong August payrolls figures led traders to add to pricing for a rate hike by year end. Silver and palladium fell, while copper ended flat. In currencies, the U.S. dollar was pressured lower by a two-day surge in the yen with markets speculating that authorities conducted a rate check, which has preceded official intervention in the past.  

Economic Weekly Roundup

Pressure is Rising for Fed Officials: Key Takeaways from the August Payrolls Report: 

• August payrolls increased by 162,000, following an upward revision to July's gain of 21,000. This report will likely bring a few more FOMC voting members onto the hawkish side of the debate. 
• Increased AI adoption may be one reason employment among younger workers remains subdued. In contrast, the 35-44 age cohort continues to stand out as the strongest group based on the employment-to-population ratio. Real-world experience appears to be growing more valuable to employers. 
• Durable goods manufacturing remains on an upward trend. Consistent with recent ISM surveys, signs of a manufacturing renaissance are emerging across several industries. 
• The Information and Financial sectors have been shedding workers for more than a year as firms continue to manage costs by reducing headcount. 
• The unemployment rate was unchanged at 4.1%, suggesting labor market conditions remain relatively tight. The Congressional Budget Office estimates the noncyclical unemployment rate at 4.4%. While we see little risk of accelerating wage inflation, Federal Reserve officials may view the labor market differently 

Bottom line: Given the strength of the payroll report, a rate hike on September 16 appears increasingly likely. Ironically, a rate hike may generate less market volatility than another meeting in which policymakers choose to stand pat. 

The Week Ahead

The following economic data is slated for the week ahead: 

• Monday: Labor Day holiday, no economic releases scheduled 
• Tuesday: NFIB Small Business Optimism (Aug), NY Fed One-Year Inflation Expectations, Consumer Credit (Jul)  
• Wednesday: MBA Mortgage Applications (Sep 4), ADP Weekly Employment Change (Aug 22) 
• Thursday: Initial Jobless Claims (Sep 5), Continuing Claims (Aug 29), Headline and Core PPI (Aug), Existing Home Sales (Aug), Wholesale Inventories (Jul final), Wholesale Trade Sales (Jul) 
• Friday: Headline and Core CPI (Aug), Real Average Hourly and Weekly Earnings (Aug), University of Michigan Consumer Sentiment Report (Sep preliminary), Household Change in Net Worth (2Q), Federal Budget Balance (Aug)