Labor Market Data Sets the Market Tone 04/09/2026
Market Wrap
U.S. stocks rallied on Thursday as Treasury yields pulled back and investors welcomed signals that the Federal Reserve could keep interest rates unchanged at its September meeting.
The Dow Jones Industrial Average jumped more than 600 points, or 1.2%, posting its strongest session since Aug. 4. The S&P 500 gained more than 1%, while the Nasdaq Composite advanced 1.4% as technology shares helped lead the rebound.
Treasury yields moved lower after Fed Governor Christopher Waller indicated he would be inclined to support holding the federal funds rate at its current 3.5% to 3.75% range when policymakers meet Sept. 15-16. The comments helped ease some of the rate concerns that have pressured equities in recent sessions.
Corporate earnings added to the momentum. Snowflake (SNOW) surged more than 16% after beating second-quarter earnings and revenue expectations and issuing a strong outlook. Broadcom (AVGO), meanwhile, fell nearly 3% as investors focused on a weaker-than-expected fourth-quarter revenue forecast.
Thursday's advance put all three major indexes on track for weekly gains. The S&P 500 is up about 0.5% for the week, the Nasdaq 0.7% and the Dow 0.2%.
Attention now turns firmly to Friday's August employment report, the final major labor-market test of the week. Economists expect the U.S. economy to have added 53,000 jobs after losing 23,000 in July, while the unemployment rate is forecast to hold at 4.1%.
With the Fed's September decision approaching, the payroll and unemployment numbers could prove decisive in shaping expectations for the next move in interest rates.
AI Financing Boom Puts Bond Market Under Pressure
Wall Street is increasingly looking to Fed Chair Kevin Warsh to bring stability to a Treasury market facing a major wave of corporate borrowing, much of it tied to the AI buildout.
Around $200 billion of new U.S. investment-grade corporate bonds could hit the market in September alone, while Deutsche Bank expects net issuance to reach a record this year. At the same time, AI capital spending could approach $1.1 trillion next year.
Tech giants including Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT) and Oracle (ORCL) are driving the investment cycle, raising concerns that corporate borrowers and the U.S. government will increasingly compete for investor capital.
Strong demand has so far helped absorb new bond supply, but borrowing costs remain elevated. The 10-year Treasury yield remains around 4.75%, near its highest levels since early 2025, despite easing after Fed Governor Christopher Waller signaled opposition to a September rate hike.
With corporate issuance accelerating and government borrowing needs already high, September and October could provide a key test of whether bond markets can absorb the additional supply without pushing yields significantly higher.
Stocks on the Move
- Lululemon Athletica (LULU): Shares plunged 18% after the athletic apparel company issued a disappointing current-quarter outlook. Lululemon expects earnings of 93 to 98 cents per share on revenue of $2.29 billion to $2.32 billion, well below Wall Street expectations.
- DocuSign (DOCU): Shares gained more than 4% after second-quarter earnings and revenue topped expectations. The company also raised the upper end of its full-year revenue guidance and improved its outlook for adjusted operating margin.
- Zscaler (ZS): Shares were little changed after giving up earlier gains. Fourth-quarter adjusted earnings of $1.19 per share on $898 million in revenue beat expectations, while current-quarter guidance also came in ahead of forecasts.
- Adobe (ADBE): Shares fell more than 1% after the software company named Anil Chakravarthy as its next CEO, succeeding Shantanu Narayen, who previously announced plans to step down.
- Planet Labs (PL): Shares advanced 4% after stronger-than-expected second-quarter results. The satellite-imagery company reported adjusted earnings of 2 cents per share on $116.1 million in revenue, beating expectations for a loss and lower sales.
- Asana (ASAN): Shares tumbled about 11% after its third-quarter outlook disappointed investors. The company expects revenue of $217 million to $219 million and adjusted earnings of 8 cents per share.
- Guidewire Software (GWRE): Shares dropped 15% after current-quarter revenue guidance fell short of expectations. The company forecasts revenue of $372 million to $378 million, below the $387 million consensus estimate.
Watchlist: NVDA, AMD, CRM, LULU, ADBE, ZS, DOCU, GWRE, PATH, PL, AAPL, TSLA, MSTR
Key Economic Events Today
Economic Data (EST)
- 08:30 AM — USD Unemployment Rate
- 08:30 AM — USD Non Farm Employment Change
Earnings
No significant earnings today.
