New York, September 4, 2025 — U.S. stocks closed higher on Wednesday after a volatile trading session, as technology shares led a rebound and softer labor market data reinforced expectations that the Federal Reserve may move closer to cutting interest rates.
The Nasdaq Composite advanced by 1%, lifted by strong performances from Alphabet, Apple, and Dell. Alphabet surged after a U.S. court decision eased antitrust concerns, sparking optimism that its search and mobile ecosystem would remain intact. The S&P 500 climbed 0.5%, buoyed by broad gains in growth-oriented stocks. The Dow Jones Industrial Average, however, slipped 0.1% as energy names dragged lower amid a decline in oil prices.
Investor sentiment was shaped by the latest Federal Reserve Beige Book, which reported weaker consumer spending across all regions. Meanwhile, job openings fell to their lowest level in ten months, marking the first time since the pandemic that the number of job seekers has surpassed vacancies. The cooling labor market, combined with signs of slowing economic momentum, strengthened the case for the Fed to ease policy sooner rather than later.
Bond markets reflected the shift in expectations. Treasury yields eased during the session, offering relief to equities after recent spikes that had unsettled investors. Gold prices climbed above US$3,500 per ounce, underscoring demand for safe-haven assets amid lingering uncertainty about global growth.
Overseas, European markets steadied despite lingering inflationary pressures that could complicate the European Central Bank’s rate-cut trajectory. In Asia, Indian equities stood out, with the Sensex rising more than 400 points and the Nifty 50 breaking above 24,700, fueled by strong gains in banks and metals.
Yet in the U.S., concerns remain over the durability of the economy as borrowing costs stay elevated. Long-dated Treasury yields hovered near 5%, levels not seen in years, pointing to persistent anxieties about public debt and fiscal sustainability.
Market participants are now turning their attention to Friday’s non-farm payrolls report, widely viewed as a pivotal release that will shape the Fed’s next steps. A weaker-than-expected jobs print could solidify market bets on a rate cut later this year, while any sign of resilience may keep the central bank cautious.
