Stock Market Today: Nasdaq Surges, S&P 500 Gains, Dow Lags

Nasdaq Extends Rally While Dow Struggles for Momentum

The Nasdaq Composite (^IXIC) surged 0.8% to a fresh record at 21,869.97, with semiconductor and AI-linked equities again driving the outperformance. Nvidia (NVDA) climbed more than 2% after reversing part of its August slump, while Broadcom (AVGO) extended its recent run, adding 4% and pushing its market cap above $1.6 trillion—now comfortably ahead of Tesla (TSLA) at $1.1 trillion. The S&P 500 (^GSPC) added 0.4% to 6,505.96, and the Dow Jones Industrial Average (^DJI) lagged, gaining just 0.2% or 67 points.

The concentration of gains within mega-cap tech was reinforced by strength in Meta (META), Microsoft (MSFT), Alphabet (GOOG), and Amazon (AMZN), each advancing between 1% and 2%. The Technology Select Sector SPDR Fund (XLK) led the S&P sectors with a 0.9% increase, while defensive groups like utilities and telecoms fell sharply. AT&T (T) slid nearly 3%, T-Mobile (TMUS) dropped 3.8% to $243.20, and Verizon (VZ) retreated 2% after EchoStar (SATS) confirmed a $17 billion wireless spectrum sale to SpaceX, shaking up telecom competition.

Inflation and Fed Rate Cut Expectations Dominate

This week’s trading tone is dominated by the Producer Price Index (PPI) due Wednesday and the Consumer Price Index (CPI) on Thursday. Economists expect CPI to rise 0.3% month-on-month and 2.9% year-on-year, a rebound from July’s softer pace. Combined with a weak August labor report—nonfarm payrolls slowing sharply and unemployment climbing to 4.3%, the highest since 2021—the stage is set for the Federal Reserve to deliver a meaningful policy cut at next week’s FOMC meeting.

Market pricing now leans toward a 50 basis point reduction, rather than 25 bps, with Standard Chartered openly forecasting the Fed will move by half a percentage point, taking rates down from 4.5%. Swaps markets imply nearly three cuts could follow before year-end. The jobs slowdown was striking: within six weeks, labor conditions flipped from “solid to soft,” as wage growth cooled and hiring in manufacturing contracted. The revision to prior months’ payroll data, set for release Tuesday, could further influence expectations.

Tariff Uncertainty Adds Political Risk

The political backdrop remains volatile. Treasury Secretary Scott Bessent warned that if the Supreme Court rules against the legality of President Trump’s tariffs, the Treasury would need to refund nearly half of collected duties. This creates fiscal uncertainty at a time when deficits are already widening. Investors are factoring this into inflation expectations, since a reversal could lower import costs but dent government finances.

Internationally, political risk is rising as well. France’s Prime Minister François Bayrou faces a confidence vote expected to collapse his government, while Japan’s Prime Minister Shigeru Ishiba announced his resignation, sending the Nikkei 225 (^N225) up 1.45% to 43,643.81 and the Topix to fresh records as investors looked past political uncertainty to corporate resilience.

Corporate Moves Reshape Market Dynamics

Big corporate headlines were abundant. Robinhood (HOOD) surged more than 14% to $115.47 after being confirmed for inclusion in the S&P 500 (^GSPC) effective September 22, replacing Caesars Entertainment (CZR). AppLovin (APP) soared 11.2% to $545.33 on similar news, while Emcor (EME) also joins the benchmark. The reshuffling highlights the growing dominance of fintech and digital platforms.

EchoStar (SATS) shares rocketed 15.3% to $77.53 after its $17 billion spectrum sale to SpaceX was finalized. The deal includes $8.5 billion in cash and $8.5 billion in stock, alongside SpaceX covering roughly $2 billion in EchoStar debt payments through 2027. The long-term arrangement will give Boost Mobile customers access to Starlink Direct-to-Cell services, reshaping mobile competition.

In banking, PNC Financial (PNC) fell 0.6% to $203.19 despite unveiling a $4.1 billion acquisition of Colorado’s FirstBank, which adds $27 billion in assets and expands PNC’s branch footprint in Denver. The deal cements PNC as the eighth-largest U.S. bank by assets, but still trails Capital One (COF) and US Bancorp (USB).

In tech, ASML Holding (ASML) rose 1.55% to $793.84 after committing €1.3 billion ($1.5 billion) into French AI firm Mistral, boosting Europe’s AI independence push. The company now holds a major stake in Europe’s most valuable AI startup, valued at $14 billion.

Commodity Markets and Haven Demand

Gold (GC=F) climbed 0.72% to $3,679.70 per ounce, less than $20 away from record highs. The metal is benefiting from rate cut speculation, haven demand, and concerns over tariff uncertainty. Traders have positioned for sustained strength with nearly three rate cuts priced for this year, making non-yielding bullion more attractive.

Meanwhile, oil benchmarks were steadier, with WTI crude (CL=F) holding near $72 per barrel and Brent (BZ=F) at $76, reflecting a balance between OPEC+ production cuts and sluggish demand indicators from China.

Tesla Faces Market Share Pressure Amid Pay Package Drama

Tesla (TSLA) added just over 1% in premarket to $262 but continues to face pressure as U.S. market share fell to its lowest since 2017. At the same time, its board is asking investors to approve a new compensation package for Elon Musk, potentially worth $1 trillion over the next decade. This contrasts with rivals like Xpeng (9868.HK), which announced global expansion of its Mona brand in 2026.

Global Equities and Macro Backdrop

Outside the U.S., Kospi (^KS11) gained 0.2% to 3,211.36, Hang Seng (^HSI) inched up 0.3% to 25,487.02, and Shanghai Composite improved 0.2%. Australia’s S&P/ASX 200 (^AXJO) slipped 0.3% to 8,845.50, showing regional divergence.

The broader risk environment reflects uncertainty over U.S. immigration raids impacting Korean giants Hyundai (005380.KS, HYMLF) and LG Energy Solution (373220.KS). The crackdown in Georgia raised questions about billions in U.S. EV battery investment.

Weekly Market Stance: Buy, Sell, or Hold?

Data dependency dominates. With the Nasdaq (^IXIC) at record highs and the S&P 500 (^GSPC) pushing toward 6,510, momentum remains with technology and AI leaders like NVDA and AVGO, both clear Buy candidates as capital expenditure in AI infrastructure accelerates. HOOD is upgraded to Buy as S&P 500 inclusion should attract passive inflows. SATS is a speculative Hold, with valuation stretched after a 23% surge but underpinned by its SpaceX partnership.

For indices, Nasdaq retains a bullish tilt, S&P 500 is a Buy on dips, while the Dow (^DJI)—with its heavy industrial and telecom weighting—leans Hold as it struggles for traction. Defensive names like T, TMUS, and VZ remain Sell candidates as competitive pressures deepen. Haven flows keep Gold (GC=F) firmly in Buy territory near $3,680.

That's TradingNEWS