NEW YORK, September 3, 2026, 17:00 EDT — Zscaler (ZS.O) gave up most of an earlier 12% rally on Thursday while the Nasdaq Composite held onto its 1.4% rise, as investors reacted to technology sector moves during the session.
- The Nasdaq Composite ended the session up 1.40%, while the S&P 500 rose 1.06%.
- SPY edged down 0.03% while QQQ declined 0.02% between 16:00 and 17:00 EDT.
- The probability of a rate hike in September dropped to 50.4%, down from 63.2% the previous day.
- Zscaler NASDAQ:ZS reached $199.20 before dropping to $182.00 by 17:00 EDT.
Tech shares continued to drive gains in U.S. stocks into the first hour after the close on Thursday. The Nasdaq Composite ended the session up 1.40% at 26,584.06. In after-hours trading through 17:00 EDT, major index ETFs fluctuated by less than 0.03%.
The stability was significant as the rally was driven by changes in rate expectations. Following the close, individual stock earnings risk re-emerged. Zscaler gave up almost all of its initial 12% surge shortly after the open.
Close gains held in the first aftermarket hour
The S&P 500 closed at 7,747.71, gaining 1.06%. The Dow climbed 1.18% to end at 53,686.11. The Nasdaq outperformed the major indexes, rising 1.40%.
Federal Reserve Governor Christopher Waller was the primary driver. Further disinflation would make him “inclined to support holding” rates unchanged this month. However, strong inflation data for August might still prompt an increase. Federal Reserve speech
Rates carried the equity signal
Change from Wednesday’s close to Thursday’s close
The move lowered the two-year Treasury yield to 4.34% from 4.39%, while the 10-year yield slipped to 4.77% from 4.79%. The probability of a September rate increase declined to 50.4%, down from 63.2% on Wednesday.
Major technology stocks were the primary drivers of the index. Microsoft NASDAQ:MSFT advanced 2.7%, Apple NASDAQ:AAPL increased 1.0%, while Meta Platforms NASDAQ:META rose 3.0%. NVIDIA NASDAQ:NVDA was up 1.8% following its $13 billion Hugging Face deal.
Oil gains were capped. U.S. crude closed up 0.3% at $91.30 per barrel, while Brent eased 0.1% to $95.52 amid ongoing Middle East supply concerns.
Market action remained mixed after earnings reports. Snowflake NYSE:SNOW surged 16.6%, contrasted by Broadcom NASDAQ:AVGO slipping 2.7%. Hewlett Packard Enterprise NYSE:HPE climbed 5.0%. Tyson Foods NYSE:TSN fell 7.3%, while Victoria’s Secret & Co. NYSE:VSCO tumbled 13.2%.
Results drove a two-sided tape
Regular-session change; bar length compares absolute moves
Zscaler served as an early volatility indicator, finishing the session at $177.80, a gain of 2.94%. The stock touched $199.20 at 16:06 and was last trading at $182.00 at 17:00.
The company posted a 25% increase in quarterly revenue and annual recurring revenue. Revenue totaled $898.2 million, with ARR climbing to $3.771 billion. Free-cash-flow margin declined to 7% from 24%, reflecting higher capital expenditures.
Focus shifts to the August employment report, due Friday. August inflation data will be released on September 11. The Federal Open Market Committee convenes September 15–16.
Risks: Limited liquidity in after-hours trading may skew prices for ETFs and individual stocks. Strong jobs or inflation data may revive expectations of rate hikes. Crude above $90 continues to fuel inflation concerns.
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