2026-09-03 · By SEPT AI
U.S. equities finished firmly in positive territory on Thursday, driven by a wave of better-than-expected earnings from the software and cloud computing sectors. The S&P 500 and Nasdaq Composite posted solid gains, while the Dow Jones Industrial Average also advanced, though small-cap stocks lagged as investors rotated into growth names.
The S&P 500 (SPY) rose 0.68% to close at $773.12, recovering from an intraday low of $767.45 to hit a high of $774.03. The Nasdaq 100 (QQQ) outperformed, climbing 0.95% to $717.61, buoyed by strong results from several high-profile technology companies. The Dow Jones Industrial Average (DIA) added 0.54% to finish at $536.92, while the Russell 2000 (IWM) slipped 0.21% to $295.18, reflecting a preference for large-cap growth over small-cap value.
The Fear & Greed Index, a widely watched measure of market sentiment, stood at 65, indicating "Greed" among investors.
The technology sector was the clear leader on Thursday, powered by a wave of earnings beats from cloud and software companies. Samsara Inc. (IOT) surged after reporting fiscal second-quarter results that topped expectations on both the top and bottom lines. The company posted adjusted earnings per share of $0.20, beating the $0.16 consensus estimate, while revenue of $508.4 million exceeded the $483.3 million forecast. Samsara also raised its full-year guidance, sending shares sharply higher.
Docusign (DOCU) also rallied after its fiscal second-quarter earnings beat estimates, with the company citing strong momentum from its artificial intelligence initiatives. UiPath (PATH) was another standout, rising after reporting better-than-expected second-quarter sales and raising its full-year revenue outlook above analyst estimates. The company also announced the promotion of Hitesh Ramani to chief financial officer.
Guidewire Software (GWRE) added to the positive sentiment, reporting adjusted earnings of $0.99 per share for its fiscal fourth quarter, beating the $0.94 estimate, while revenue of $411.1 million also topped expectations.
Not all tech names fared well, however. Planet Labs (PL) tumbled after issuing third-quarter revenue guidance of $101 million to $105 million, well below the $114.3 million consensus estimate. Asana (ASAN) also declined after reporting second-quarter results and issuing third-quarter adjusted earnings guidance that fell short of expectations.
Consumer Discretionary: Lululemon Disappoints
The consumer discretionary sector was under pressure after Lululemon Athletica (LULU) reported quarterly results that, while showing an earnings beat, were overshadowed by a weak outlook. The company cited "challenging dynamics" in its forecast, sending shares sharply lower. Oxford Industries (OXM) also weighed on the sector, as the apparel company issued a disappointing third-quarter outlook, forecasting an adjusted loss per share of $1.40 to $1.20, far worse than the expected loss of $0.59. The company also lowered its full-year adjusted earnings and sales guidance.
Several stocks experienced dramatic moves on Thursday, driven by earnings, corporate actions, and sector-specific news.
ChargePoint Holdings (CHPT) surged 31.45% to $9.07 on heavy volume of over 40 million shares, though no specific catalyst was immediately apparent. HPEL jumped 31.36% to $17.09, and CIFG gained 28.71% to $4.59.
On the downside, CNTB plunged 32.69% to $1.91, while SMST fell 29.41% to $17.97. MSTZ dropped 29.30% to $3.62 on massive volume of nearly 60 million shares. GoPro (GPRO) was among the biggest losers, sliding 21.91% to $1.39 on volume of over 142 million shares, though no specific news was cited.
Key Earnings: A Mixed Bag
Beyond the software sector, several other companies reported quarterly results.
Victoria's Secret & Co. (VSCO) reported earnings per share of $2.18 on revenue of $1.611 billion, though no consensus estimates were available for comparison. Ciena (CIEN) reported revenue of $1.67 billion, but earnings data was not provided. Smith & Wesson Brands (SWBI) beat estimates, with adjusted earnings of $0.06 per share versus an expected loss of $0.05, on revenue of $112.6 million, topping the $98.7 million consensus.
There were no major economic data releases or Federal Reserve comments on Thursday, allowing corporate earnings to take center stage. The absence of macro headwinds helped support the risk-on tone in the market.
Notable insider buying was observed across several sectors, signaling confidence from corporate executives.
Republic Services (RSG) saw the most significant insider activity, with 77 insiders buying a combined $958.2 million worth of shares. Taiwan Semiconductor (TSM) also saw strong insider buying, with 77 insiders purchasing $1.2 million in stock. Huntington Bancshares (HBAN) had 10 insiders buying $1.1 million, while Ecolab (ECL) saw four insiders purchase $2.7 million. Vail Resorts (MTN) had two insiders buying $5.0 million, and Textron (TXT) saw one insider purchase $988,594.
Bitcoin and Ethereum traded in a narrow range on Thursday, with no major catalysts driving significant price action. The broader cryptocurrency market remained relatively calm, with investors focused on the equity market's earnings-driven rally.
Investors will turn their attention to Friday, where a lighter earnings calendar is expected. However, the market will be watching for any additional guidance from companies that reported this week, particularly in the software and consumer sectors. On the economic front, there are no major data releases scheduled, but traders will remain alert for any Federal Reserve commentary or geopolitical developments that could shift sentiment.
The strong earnings from the software sector have provided a tailwind for growth stocks, but the disappointing outlook from Lululemon and Oxford Industries serves as a reminder that consumer spending remains under scrutiny. With the Fear & Greed Index in "Greed" territory, the market's near-term direction may hinge on whether the positive momentum from tech earnings can sustain itself into next week.
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