NEW YORK, September 2, 2026, 11:00 EDT — The Russell 2000 climbed 1.01% Wednesday, advancing at twice the pace of the S&P 500 as strength in materials and banking stocks underpinned a widespread move higher. The Nasdaq Composite was up 0.25%.
- Through 11:00 EDT, the Russell 2000 was up 1.01%, with the Dow increasing 0.78%, the S&P 500 rising 0.49% and the Nasdaq climbing 0.25%.
- In the previous hour, WTI crude rose 1.48% to $90.41, while the yield on the 10-year Treasury increased by one basis point to 4.794%.
- Materials advanced 2.01% and financials climbed 1.72%, whereas technology slipped 0.32%; trading volume in small-cap ETFs exceeded that of Tuesday’s start.
The spread is more significant than the overall gain. Investors preferred smaller and more cyclical stocks, despite high bond yields putting pressure on long-duration technology valuations.
The S&P 500 was up 0.29% between 10:00 and 11:00 EDT. The Russell 2000 increased 0.36%, with the Dow climbing 0.21% and the Nasdaq higher by 0.25%.
Small caps led both the session and prior hour
Percent change from Tuesday’s close and from 10:00 EDT
As of . Source: Yahoo Finance delayed one-minute data; TS2 calculations.
Automatic Data Processing NASDAQ:ADP reported that private-sector employers increased payrolls by 38,000 in August, the weakest growth since January. The figure for July was revised to 46,000. “Pay can tell us a lot about today’s choppy hiring,” chief economist Nela Richardson said in the company’s release.
The jobs data failed to spark a decisive rally in bonds. The 10-year yield held at 4.794%, showing little movement for the session, as WTI crude climbed from $89.09 at 10:00 EDT to $90.41. This combination continued to weigh on growth stocks sensitive to interest rates.
Eight out of 11 sector funds rose. Materials, communication services and financials each advanced by at least 1.72%, while technology, utilities and real estate declined.
Sector breadth favored cyclicals over duration
Sector Select SPDR change from Tuesday’s close
As of . Source: Yahoo Finance delayed data; TS2 calculations. Bar lengths use a 2.01% scale.
The highest participation occurred outside the mega-cap group. As of 11:00 EDT, IWM saw 7.24 million shares exchanged, marking a 5.8% increase over the same opening period on Tuesday. Meanwhile, SPY and QQQ traded at volumes roughly 13% below their previous day’s rates.
Dell Technologies NYSE:DELL advanced 4.35% following news of a $95 billion backlog for AI servers. GitLab NASDAQ:GTLB surged 15.79% as quarterly revenue climbed 21%, while net annual recurring revenue growth exceeded 40%. The results were disclosed in Dell’s earnings call and GitLab’s release.
MongoDB NASDAQ:MDB dropped 10.80%, even as revenue climbed 30%. Credo Technology NASDAQ:CRDO declined 19.07% following 114.7% growth. Their financial results and guidance indicated that robust headline growth was not sufficient to sustain premium AI-related valuations.
Earnings rewarded operating leverage, not growth alone
Price change from Tuesday’s close; company-reported catalyst
Revenue +21%; net ARR growth above 40%
AI-server backlog reached $95 billion
Revenue +30%; Q3 guide below Q2 revenue
Revenue +114.7%; valuation reset dominated
Prices as of . Sources: delayed Yahoo Finance prices and company releases.
The shift came after a widespread slide on Tuesday. The S&P 500 slipped 0.7%, the Dow dropped 0.8%, and the Nasdaq declined 1% as oil prices and bond yields increased, according to the Associated Press.
Risks: A move in oil prices above $90 and a 10-year yield approaching 4.8% could halt gains in small-caps. Friday’s payroll data could also outweigh the weaker private hiring figure seen on Wednesday. Current market reporting indicated investors remain attentive to energy-driven inflation and the upcoming September policy gathering.
The morning update was concise yet informative. Cyclical breadth showed gains, but oil prices and yields continued to uphold the valuation challenge.
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