Markets News, Sept. 3, 2026: Stocks Surge to Close Higher for 2nd Straight Day as Treasury Yields Fall

Markets saw a surge on Thursday, with stocks closing higher for the second straight day. The Federal Reserve's comments boosted investor hopes that interest rates wouldn't rise soon, causing Treasury yields to drop. Major indexes like the Nasdaq Composite, Dow Jones Industrial Average, and S&P 500 all increased by 1.4%, 1.2%, and 1.1% respectively.

The Dow Jones added more than 600 points, marking the second day of gains for these major indexes. The yield on the 10-year Treasury note fell to 4.77%, down one basis point from Wednesday's close. Traders now see a 50% chance of a Fed rate increase at their September meeting, down from 60% before the Fed official's comments.

In tech-focused companies, Snowflake (SNOW) stock rose 17% after reporting better-than-expected earnings driven by strong AI demand. Other software stocks like Palantir Technologies (PLTR), ServiceNow (NOW), and CrowdStrike Holdings (CRWD) also surged. Meanwhile, some traditional retail stocks, including Victoria's Secret (VSXY), witnessed a significant drop of 13% after sales fell short of expectations.

Other sectors like energy, represented by Brent crude futures, showed minimal movement. Meanwhile, Bitcoin climbed from around $77,000 to $81,500, impacting crypto-tied stocks such as Robinhood Markets (HOOD). The U.S. dollar index, which tracks the greenback's value against foreign currencies, saw a 0.6% decrease.