Stock Market Update Friday September 5, 2025
Stock Market Update Friday September 5, 2025 Friday’s softer-than-expected jobs report effectively cemented expectations for a Fed rate cut at the upcoming meeting. Equities initially gapped higher as weaker labor data drove Treasury yields lower and boosted the implied odds of additional easing into year-end, with AVGO’s earnings and the OpenAI rally providing incremental momentum. That optimism proved fleeting, however, as traders quickly faded the move and major indices reversed intraday. The pullback was orderly—SPX clawed back into the close, leaving the week essentially flat. The rate-sensitive Russell 2000 (IWM) managed to finish in positive territory.
On the session: SPX -0.3%, QQQ unchanged, IWM +0.4%.
Away From Stocks: Treasuries rallied with both the 2-year and 30-year yields down eight basis points to 3.51% and 4.78%, respectively. Commodities saw a “sell-the-news” response as WTI crude slipped to $62/bbl, while gold briefly pierced $3,600 before settling at $3,589/oz. Digital assets were steady with bitcoin holding near $111,000. Volatility ticked modestly higher, with the VIX closing just above 18.
Palantir (PLTR) remains one of our preferred fintech names, but we are currently waiting for a buy signal from our proprietary algorithm before adding exposure. Importantly, our strategy does not involve establishing short positions in high-growth equities such as Palantir. As a result, discipline is key—we must remain patient and allow our signals to confirm before initiating new positions.
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