Stocks snap three-day losing streak as bond yield surge takes a pause

Welcome to Wall Street Wrap, your quick end-of-day rundown of what moved US markets today, plus what's shaping global sentiment overnight.

Markets Today

Wall Street rebounded on Wednesday, breaking a three-day losing streak as the recent spike in Treasury yields eased off. The Dow led the charge, helped by gains in Nvidia and Johnson & Johnson, while the S&P 500 and Nasdaq 100 also closed firmly in the green. The VIX dropped nearly 7%, signaling a notable cooldown in hedging demand after a jittery start to the week. Breadth was healthy across the board, with the bulk of S&P sectors finishing higher on the day.

Close Levels

Analytical View

Stocks have been pressured lately by elevated bond yields as traders worried about the impact of rising oil prices on inflation. The S&P 500, Nasdaq, and Dow snapped a three-day losing streak Wednesday as the latest rise in yields eased. The 10-year yield touched 4.818%, its highest since November 2023, before settling little changed. Breadth was healthy, with nine of eleven S&P sectors advancing, suggesting the bounce wasn't confined to mega-cap tech. New York Fed President John Williams pushed back on the idea that a rate hike is a foregone conclusion, framing the yield surge as a byproduct of a strong economy rather than dysfunction, a read that helped ease pressure into the close.

The bigger backdrop stays unsettled: fresh US-Iran escalation renewed energy-driven inflation concerns, while bond yields hit multi-decade highs across Germany, the UK, Japan, and Australia, pointing to a global repricing of inflation and fiscal risk rather than a US-only story.

What could change the picture: Friday's August jobs report is the next major catalyst. ADP's private payrolls print came in soft at 38,000 (vs. 47,000 expected), the slowest since January, which could pull forward rate-cut bets if confirmed by the official number. Any further escalation in the Middle East, or a fresh leg higher in oil prices, would also be worth watching given its direct read-through to inflation expectations and yields.

Sector Performance

Winners & Losers

Top 5 Gainers

Top 5 Decliners

After-Hours Movers

Gainers

Decliners

Commodities & Rates

Top Stories: US

• Broadcom tops estimates as AI chip revenue keeps climbing. Broadcom's fiscal Q3 revenue came in at $29.6 billion, up 86% year-over-year, beating estimates, with AI semiconductor revenue growing 221% year-over-year. Adjusted EPS beat consensus by over 3%. The company raised its full-year AI semiconductor revenue guidance and outlined a multi-year outlook, projecting AI revenue could roughly double again by fiscal 2028, driven by long-term agreements with several major AI customers.
• Hewlett Packard Enterprise posts a broad beat, raises guidance. HPE's fiscal Q3 revenue rose 34% year-over-year to $12.2 billion, topping estimates, while adjusted EPS beat consensus by more than 16%. Networking and cloud/AI segment revenue both grew strongly, and the company raised its full-year EPS and free cash flow targets. Orders and backlog reached record highs, though supply constraints limited how much revenue could convert this quarter.
• Treasury yields hit fresh multiyear highs before easing. The 10-year Treasury yield touched 4.818%, its highest level since November 2023, before retreating to close little changed, as inflation and fiscal concerns continued to pressure global government borrowing costs. Market strategists noted investors are increasingly weighing whether to lock in elevated yields now or wait for rates to climb further.
• Private payroll growth slows sharply in August. ADP data showed private employers added just 38,000 jobs in August, the slowest pace since January, missing expectations and down from an upwardly revised July figure. Hiring was concentrated in education, health care, construction and leisure, while manufacturing and professional services shed jobs, adding to questions ahead of Friday's official employment report.
• Amazon slides on delivery-cost overhang. Amazon shares fell roughly 2% and dipped below their 100-day moving average intraday, edging into bearish technical territory. A proposed New York City delivery mandate added a fresh regulatory concern, with estimates suggesting it could add hundreds of dollars in extra annual costs per household.
• A beat isn't always enough this week. MongoDB topped earnings estimates and raised its own guidance, yet shares still fell more than 13% intraday as investors booked profits in a jittery, risk-off tape. Credo Technology posted revenue growth of over 114% year-over-year but saw its stock drop 18%, a reminder that strong fundamentals haven't been shielding stocks from broader market nerves this week.

Top Stories: Global

• US and Iran exchange heaviest strikes since July. The United States and Iran carried out their largest exchange of fire in months, with U.S. forces striking Iran's southern coast and Tehran firing at American bases across the Gulf region. Iran alleged a wedding gathering was hit, with dozens of casualties reported, while U.S. officials pushed back on aspects of Iran's account. Crude prices briefly spiked toward $97 a barrel on fears of a supply disruption through the Strait of Hormuz before easing back as signs pointed to oil continuing to flow. The escalation renewed fears over regional energy supply disruptions and comes ahead of U.S. midterm elections in November.
• Global bond selloff deepens on inflation and fiscal worries. Government bond yields rose across major economies, with German 10-year bund yields hitting their highest level since 2011 and UK gilt yields touching a fresh post-2008 high before both pared gains. Rising oil prices tied to the Middle East conflict, along with concerns over sovereign debt loads in the US, Japan and France, were cited as key drivers of the global rate pressure.
• Australia's economy beats forecasts, reinforcing rate-hike bets. Australian GDP grew a stronger-than-expected 0.4% in the second quarter, with annual growth accelerating to 2.1%. The upside surprise pushed market-implied odds of a September rate hike higher, with a November hike now more than fully priced in, as elevated oil prices add to inflation concerns for the Reserve Bank of Australia.
• Bank of Canada holds rates steady, flags inflation risks. The Bank of Canada kept its benchmark rate unchanged at 2.25%, as expected, while flagging stronger upside risks to inflation tied to higher energy prices and renewed tariff tensions with the US. The central bank noted the domestic economy has shown resilience despite the shock from the Middle East conflict.

Management & Fed Speak

John Williams, President, Federal Reserve Bank of New York, on the Treasury yield surge:

The recent rise in Treasury yields reflects a strong economy rather than market dysfunction. On whether a rate hike is needed, he said there are no clear signs right now on whether current policy is sufficient, and that the Fed needs to wait and see.

Federal Reserve Beige Book, released Wednesday, on current economic conditions:

The economy grew "modestly" across districts, per the Fed's latest Beige Book. Employment "rose very slightly overall," while prices "increased moderately," though one of the twelve districts reported "robust increases." The report flagged mixed sentiment across sectors, with contacts citing heightened uncertainty tied to higher energy prices, policy, and the ongoing international conflict. On the labor side, the Fed noted uneven effects from AI adoption, alongside strong demand for skilled trade and technical workers and "significant wage increases" in manufacturing and construction.

Corporate Actions & Earnings Calendar

Economic Calendar (Upcoming)

Tomorrow's Notable Earnings (Thursday, Sept 3)

Also reporting after today's close / before tomorrow's open:

• Broadcom (AVGO): Q3 FY26 results beat on revenue and EPS; raised AI revenue guidance (see Top Stories)
• Hewlett Packard Enterprise (HPE): Q3 FY26 results beat across the board; raised full-year guidance (see Top Stories)

Ex-Dividend Today (Sept 3)