The S&P 500 continued to test investor nerves over the last two weeks, but with a surprising twist of resilience. From August 25 to 29, the index slipped slightly from 6,466.91 to 6,460.26, a drop of 0.10%. The first week of September saw the benchmark regain its footing, climbing back to 6,481.50, a 0.33% increase. That left the two-week stretch with a modest overall gain of 0.23%. Driving this strength was a backdrop of robust GDP growth and a powerful wave of AI-driven investments that helped the S&P 500 touch record highs near 6,532.
Driving this strength was a backdrop of robust GDP growth and a powerful wave of AI-driven investments that helped the S&P 500 touch record highs near 6,532. The economic picture, however, showed cracks. The August jobs report revealed just 22,000 new roles added, far below the expected 76,500. This was the weakest monthly job growth since the early pandemic days. The unemployment rate edged up to 4.3%, the highest in four years. Markets swiftly priced in a Federal Reserve response, with futures now showing an 89.4% probability of a 25 basis point cut at the upcoming meeting. The U.S. dollar dropped to a seven-week low, and bond markets rallied on hopes of accelerated easing.
Meanwhile, confidence in the American Dream dimmed further. A Wall Street Journal-NORC poll showed only 25% of Americans believe they can improve their standard of living, with 70% saying the dream feels out of reach, levels unseen since 1987. Trade tensions added to the unease, postal traffic into the U.S. plunged 80% after tariff exemptions for low-cost imports were scrapped. Gold prices rallied, reflecting investor caution, while Trump urged the Supreme Court to swiftly uphold his global tariffs. A defeat for Trump would cut the current average US effective tariff rate of 16.3% by at least half and could force the US to refund tens of billions of dollars, according to Bloomberg Economics analyst Chris Kennedy.
Weekly Earnings Roundup: Surprises & Misses
Several major companies released their earnings in the last 2 weeks, including MongoDB (NASDAQ: MDB), NVIDIA (NASDAQ: NVDA), Dell (NYSE: DELL), Pinduoduo (NASDAQ: PDD), Trip.com (NASDAQ: TCOM), Snowflake (NYSE: SNOW), CrowdStrike (NASDAQ: CRWD), Broadcom (NASDAQ: AVGO), Credo Technology (NASDAQ: CRDO), Figma (NYSE: FIG), and Alibaba (NYSE: BABA). Below is a quick look at some of the most notable names.
Broadcom: Posted results well above expectations, fueled by booming AI demand. Investors celebrated news of $10 billion in fresh orders, reportedly from OpenAI. Revenue increased 22% YoY to $15.95 billion, reversing a $1.87 billion loss to a $4.14 billion net profit. Shares jumped 9% after the announcement.
Lululemon: Delivered Q3 EPS of $3.10 versus $2.88 expected, but tariffs weighed heavily. Full-year guidance fell short of Wall Street’s hopes, with revenue projected at $10.85-$11 billion versus $11.18 billion expected. Shares plunged 19% as investors braced for a more challenging year ahead.
Credo Technologies: Reported a sharp turnaround with Q1 revenue of $223 million and net income of $63 million, compared to a loss last year. Analysts raised their targets, and shares gained 8% during the week.
Figma: Fresh off its IPO debut, Figma’s first earnings call disappointed. Quarterly sales jumped 41% to $249.6 million, but its full-year revenue outlook fell short of lofty expectations. Shares dropped 22% in the week as excitement around its blockbuster IPO cooled.
NVIDIA: Reported Q2 2026 results with revenue up 56% and EPS up 61% YoY. Still, growth momentum slowed compared with earlier quarters, and shares slipped about 7% since the release.
MongoDB: Surprised investors with stronger guidance. Revenue rose 24% YoY, and non-GAAP EPS forecasts were raised significantly. The stock soared more than 40% since the August 26 earnings release.
American Eagle Outfitters: Beat expectations with revenue of $1.28 billion, down just 1% versus guidance of a 5% decline. Campaigns featuring Sydney Sweeney and Travis Kelce drove record engagement, adding 700k+ new customers. EPS rose 15% YoY, and shares rocketed 41% in the past week.
Top Gainers
Western Digital (NASDAQ: WDC) shares gained by 13% last week after Morgan Stanley named it a “Top Pick” and raised its price target to $99. Analysts pointed to strong storage demand and favourable pricing trends.
Seagate (NASDAQ: STX) climbed 9% to an all-time high of $130.05. BofA lifted its target to $135, citing a constructive meeting with the company’s CFO.
Alphabet (NASDAQ: GOOGL) shares surged 11% after a U.S. judge ruled against breaking up the Google parent that allows Google to retain control of its Chrome browser and Android mobile operating system. Investors cheered the clarity, and Alphabet’s stock rallied strongly.
Top Losers
Chip maker Advanced Micro Devices (NASDAQ: AMD) fell 9% after Seaport Research downgraded the stock, citing slowing AI business growth. Investors worried about decelerating momentum in the highly competitive chip space.
MGM Resorts (NYSE: MGM) share price dropped by 7% amid broader market weakness and technical selling pressure.
Constellation Brands (NYSE: STZ) share price declined 7% following a weak earnings report and lowered fiscal 2026 sales guidance. EPS of $3.22 missed estimates of $3.45, while revenue dropped 5.5% YoY.
Upcoming Earnings: Key Stocks to Monitor
This week, the spotlight will turn to several high-profile names, including Oracle (NYSE: ORCL), Synopsys (NASDAQ: SNPS), Adobe (NASDAQ: ADBE), Kroger (NYSE: KR), and GameStop (NYSE: GME).
In the following week, General Mills (NYSE: GIS), FedEx (NYSE: FDX), and Ferguson (NYSE: FERG) will report, offering fresh insights into consumer staples, logistics, and industrials.
As Wall Street weighs weakening labor markets against record equity highs, investors are likely to see more volatility ahead. For now, earnings remain the balancing act that could set the tone for September trading.