U.S. stocks rebounded Wednesday as easing oil-price pressure and comments from a key Federal Reserve official helped Wall Street recover from an early-session decline. The Dow Jones Industrial Average rose about 0.7%, while the S&P 500 gained roughly 0.5% and the Nasdaq Composite climbed around 0.4%.
Stocks reversed earlier losses even as investors remained cautious about escalating U.S.-Iran tensions, elevated Treasury yields and weakening labor-market data. Sentiment improved after New York Fed President John Williams pushed back against the idea that a September rate hike is inevitable, while oil prices stabilized after their latest surge.
Market Movers:
- GitLab (GTLB) +15%: Shares jumped after the software development platform topped second-quarter expectations, with revenue rising 21% year over year to $286.3 million and net ARR growth exceeding 40%. Management also highlighted growing demand for its security and governance tools as AI agents become increasingly involved in software development.
- Eos Energy Enterprises (EOSE) +12%: Shares rallied after Eos announced a partnership with MN8 Energy and Google on a $350 million solar and energy-storage project serving Google data centers in West Virginia. The project will mark Google’s first use of Eos’ Z3 zinc-based long-duration storage technology and is expected to begin commercial operations in phases starting in 2028.
- Dell Technologies (DELL) +5%: Shares climbed after fiscal second-quarter revenue surged 58% to $46.97 billion and adjusted EPS reached $7.04, easily beating Wall Street expectations. Dell raised its fiscal 2027 revenue outlook to $192 billion as record AI server orders and a $95 billion backlog reinforced the strength of infrastructure demand.
- Credo Technology (CRDO) -18%: Shares sank despite fiscal first-quarter revenue more than doubling to $479 million and adjusted EPS rising to $1.20. Investors focused instead on narrowing gross and operating margins, with management forecasting continued spending and margin pressure during the current quarter.
- FuelCell Energy (FCEL) -13%: Shares dropped after fiscal third-quarter revenue declined 29.3% year over year and gross loss widened sharply to $24.5 million. The company’s committed backlog still increased to $1.3 billion, while its adjusted net loss per share improved from a year earlier.
- MongoDB (MDB) -12%: Shares fell even after the database software company delivered 30% revenue growth and raised its full-year revenue and earnings outlook. Rising AI and infrastructure spending pushed operating expenses 12% higher, overshadowing the company’s improving operating leverage and stronger guidance.
- Palo Alto Networks (PANW) -8%: Shares declined despite better-than-expected fiscal fourth-quarter results and an outlook calling for roughly 23% revenue growth in fiscal 2027. Analysts largely attributed the selloff to exceptionally high expectations rather than deteriorating fundamentals, with AI-driven security demand and customer consolidation trends remaining strong.
Fed Comments Take Some Pressure Off Wall Street
Investors received some relief after New York Fed President John Williams said there were “no clear signs” that a September rate increase would be necessary to bring inflation under control. His remarks softened some of the hawkish reaction that followed Fed Chair Kevin Warsh’s Jackson Hole speech last week.
Bond yields nevertheless remain a major concern. The 10-year Treasury yield hovered near 4.79%, around its highest level since 2023, while the 30-year yield held near 5.26%. Persistently elevated yields could continue pressuring growth-stock valuations even if the Fed ultimately leaves rates unchanged this month.
Oil Stabilizes as Iran Conflict Keeps Markets on Edge
Oil’s relentless climb paused Wednesday, giving stocks some breathing room after energy prices became a major source of inflation anxiety earlier in the week. Brent crude remained near $95 per barrel, while WTI hovered around $90 as investors monitored the escalating conflict between the U.S. and Iran. Geopolitical risk remains far from resolved. Further disruption to Middle Eastern production or shipping could send crude higher again, potentially feeding into inflation and making the Fed’s policy decisions even more difficult.
Weak Hiring Raises the Stakes for Friday’s Jobs Report
Fresh labor-market data added another complication. ADP reported that private employers added just 38,000 jobs in August, below expectations for roughly 47,000 and providing another sign that hiring momentum is weakening. The report follows Tuesday’s JOLTS data, which showed job openings remained relatively stable in July while hiring declined. Together, the reports reinforce the emerging “low hire, low fire” picture: employers are reluctant to expand payrolls, but widespread layoffs have yet to materialize.
Looking Ahead
Investors will now turn to the Fed’s Beige Book for another look at economic conditions across the country, while Broadcom and Snowflake earnings after Wednesday’s closing bell will provide fresh insight into corporate AI and cloud spending. Friday’s August jobs report remains the week’s biggest potential catalyst. A weak payroll number could reinforce concerns that the labor market is losing momentum, while a surprisingly strong report could revive expectations for a September rate hike. With oil prices, Treasury yields and geopolitical tensions all elevated, Wall Street remains caught between resilient corporate growth and an increasingly complicated macroeconomic backdrop.