S&P 500 falls as rate-cut optimism fizzles

The S&P 500 gave up early gains to close down 0.3%, while the Nasdaq 100 eked out a 0.1% advance and the Russell 2000 outperformed, rising 0.5%.

Your Evening Briefing September 05, 2025 S&P 500 falls as rate-cut optimism fizzles An initial burst of optimism over a soft US jobs report making a Federal Reserve rate cut this month a foregone conclusion didn't last long. The S&P 500 gave up early gains to close down 0.3%. The Nasdaq 100 eked out a 0.1% advance and the Russell 2000 outperformed with a 0.5% rise, though both indexes finished well off their highs of the day. Real estate was the best-performing S&P sector ETF while financials and energy each fell more than 1%. The day's bright spots were led by Broadcom, which rose 9.4% after the chipmaker beat top- and bottom-line estimates for Q3 and said its 2026 AI revenue outlook will "improve significantly" with OpenAI reportedly booked as a new customer. At the same time, Nvidia and No. 3 US chip player Advanced Micro Devices were down 2.7% and 6.6%, respectively, as their rival's gain was their pain. Elsewhere... Lululemon stretched 18.6% lower after the athleisure giant topped Q2 estimates but massively slashed its full-year outlook. Kenvue sank 9.2% following a WSJ report that Health and Human Services Secretary Robert F. Kennedy Jr. will tie autism to prenatal use of Tylenol. Palantir shares were slightly bruised by the momentum-driven sell-off, falling about 2%, with its slide pushing the price well below the 50-day moving average. Robinhood and Interactive Brokers tumbled amid a broad reversal in momentum stocks. (Robinhood Markets, Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.) Tesla jumped more than 3% after the company proposed an unprecedented roughly $1 trillion pay package for CEO Elon Musk, according to proxy filings. Lucid surged nearly 14% following six days of losses after headlines misidentified Cantor Fitzgerald's lower split-adjusted price target as a good thing. Salesforce shares rebounded 2.8%, after slipping Thursday, following the tech company's better-than-expected fiscal Q2 earnings results. — Luke Kawa, Markets Editor & Nia Warfield, Markets Writer The company with the world's most enviable stock ticker isn't cashing in on AI AI isn't a magic word that turns hype into profit. Read more. An interactive who's-who of the tech execs at Trump's White House dinner The White House invited a gaggle of top founders and tech executives for an intimate dinner at the White House.  See who was there and who was conspicuously absent. The Tesla directors who just proposed giving Elon Musk a trillion dollars say it's "critical" he stay out of politics Even still, the company doesn't appear to be putting up hard guardrails for Musk's political ambitions. Apple's latest phone is betting on looks, while Google looks inward Apple gets a hardware upgrade. Google gets a software overhaul. The valuation gulf between Coke and Pepsi hasn't been this wide in decades Activist investor Elliot is hoping Pepsi can regain ground in the cola wars and beyond. Your upcoming Powerball loss is DraftKings' gain As the Powerball jackpot has stretched to $1.8 billion, users are flooding into DraftKing's Jackpocket lottery app. Meta: Facebook is for the children, basically Facebook is trying to push "pokes" on young people.  BlueChew's CEO has been playing the long game in a small, noisy category In an industry dominated by venture cash and fads, BlueChew's CEO says independence and focus help him succeed. Donald Trump Jr.-backed Thumzup Media entering dogecoin mining game in a big way Thumzup estimates its planned 3,500 dogecoin mining rigs will fetch $22.7 million in annual revenue. The world's biggest illegal sports streaming platform just got shut down Where piracy is concerned, authorities are playing an almost never-ending game of "whack-a-mole." Sora aims to buy $1 billion in bitcoin in the next six months Japanese company Metaplanet already holds over $2 billion in bitcoin. Was this email forwarded to you? Don't miss out on future stories — subscribe to The Wrap and get your daily dose of financial news straight to your inbox.  Craving more insights in your inbox? Subscribe to Chartr and Snacks for quality reads. We care what you think! If you have any feedback or comments, feel free to reply and let us know your thoughts!  Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more Sherwood Terms and Conditions Our Editorial Standards Contact Us Advertise With Us Unsubscribe Privacy Policy SHERWOOD MEDIA, LLC, 85 Willow Road, Menlo Park, CA 94025