The U.S. stock market experienced a largely positive afternoon on Thursday, September 4, 2025, as investors continued to digest a mixed bag of economic data and remained optimistic about potential interest rate cuts by the Federal Reserve. Technology stocks, in particular, provided a significant boost, extending the previous day's rally.
Major market indexes showed varied performance in afternoon trading. The S&P 500 (SPX) was up approximately 0.4% by mid-afternoon, building on its 0.5% gain from Wednesday, which saw it close at 6,448.26. The tech-heavy Nasdaq Composite (IXIC) continued its upward trajectory, rising around 0.4% in Thursday's afternoon session, after surging 1% to close at 21,497.73 on Wednesday. The Dow Jones Industrial Average (DJI), however, presented a more mixed picture, hovering near the flatline or showing modest gains of around 0.3% to 0.5% in the afternoon, following a slight dip of 0.1% on Wednesday to 45,271.23. The broader market saw advancers outnumbering decliners on the NYSE by a 1.33-to-1 ratio on Wednesday, with total shares traded slightly below the 20-session average.
Sector performance on Wednesday saw the Technology Select Sector SPDR (XLK) advance 0.6% and the Communication Services Select Sector SPDR (XLC) gain 1.7%, while the Energy Select Sector SPDR (XLE) tumbled 2.2%. Thursday's trading continued to highlight the strength in technology, with major tech players contributing significantly to the Nasdaq's gains.
Looking ahead, a pivotal event for the markets is the release of the August jobs report (nonfarm payrolls) on Friday, September 5, 2025. This data is highly anticipated as it could heavily influence the Federal Reserve's next move on interest rates. Recent labor market data, including a report from ADP showing weaker-than-expected private sector hiring in August and initial jobless claims coming in slightly above estimates, has reinforced expectations for a potential rate cut at the upcoming Federal Reserve policy committee meeting on September 17. The Institute for Supply Management (ISM) Services PMI, however, showed a stronger-than-expected acceleration of growth in August, rising to 52.0 from 50.1 in July, indicating a third consecutive month of expansion. Additionally, the S&P Index Rebalancing announcement is scheduled for September 5, with implementation on September 19.
Several major companies made headlines with significant stock movements and corporate announcements. Alphabet (GOOGL) saw its shares jump 9.1% on Wednesday after a U.S. judge ruled against the Department of Justice's proposal to force the sale of Google's Chrome browser. This ruling, which also allows Google to maintain lucrative payments to Apple (AAPL) but mandates data sharing with rivals, provided a substantial boost to the tech sector. On Thursday, Alphabet shares slipped 1%. Apple shares, which rose 3% on Wednesday, were up nearly 4% in early Thursday trading before turning slightly down later in the day.
In other corporate news, Salesforce (CRM) experienced a notable drop of approximately 6.5% to 7.9% on Thursday. This decline came despite the customer-relationship provider reporting better-than-expected quarterly results, as its guidance for the upcoming period disappointed investors. Meanwhile, Macy's Inc. (M) soared 20.7% on Wednesday after exceeding profit expectations for its second-quarter fiscal 2025. Conversely, Dollar Tree, Inc. (DLTR) plummeted 8.4% after its third-quarter fiscal 2025 profit guidance fell short of estimates, partly due to tariff impacts. The Campbell's Co. (CPB) climbed 7.2% and REV Group Inc. (REVG) jumped 12.6% on Wednesday, both reporting stronger-than-expected earnings.
Other notable movements included Figma (FIG) tumbling 17.9% after its first earnings report as a public company, while C3.ai (AI) fell between 3.2% and 9% following a larger-than-expected loss and a critical assessment from its chairman. On the upside, American Eagle Outfitters (AEO) surged over 30% after reporting more than double the anticipated profit and reinstating its fiscal year guidance. Hewlett Packard Enterprise (HPE) also saw gains of 1% to 3.7% after a positive profit report. T. Rowe Price (TROW) climbed 6% to 6.4% on news that Goldman Sachs plans to acquire a significant portion of its stock as part of a new partnership. Microsoft (MSFT) ticked higher on Thursday morning, having agreed to offer discounts and free access to its Copilot AI chatbox for U.S. government agencies. Amazon (AMZN) climbed about 3%, and Meta Platforms (META) advanced more than 2% in morning trading. Nvidia (NVDA) also ticked higher.
Overall, the market remains in a delicate balance, with the resilience of mega-cap technology stocks providing upward momentum, while investors remain cautious amid ongoing economic data releases and the looming prospect of Federal Reserve policy decisions. The focus will undoubtedly shift to Friday's jobs report, which could provide clearer direction for the path of interest rates and market sentiment.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.