“Nasdaq Achieves 34.1% Gain in 8 Months Before Labor Day, Best Since 2003”
As Labor Day approaches, it’s important to note that the U.S. stock market will be closed on Monday, September 4th, in observance of the holiday. This also includes the approximately $25 trillion Treasury market, providing workers with an extended holiday weekend to enjoy.
Labor Day traditionally signals the end of summer and the beginning of the school year. On Wall Street, it often involves preparing billions of dollars’ worth of corporate bonds for sale to investors. This year, there is a flurry of “junk-rated” bonds and loans totaling $15.4 billion lined up for sale, as reported by Bloomberg.
Despite a slight dip in August, the market has shown impressive resilience heading into the fall, remaining recession-free. U.S. equities were nearing record levels, thanks in part to the AI craze that boosted certain technology stocks, including Nvidia Corp. The tech-heavy Nasdaq Composite Index, in particular, stood out with a 34.1% increase year-to-date as of Thursday.
This performance marked its best eight-month stretch leading up to Labor Day since 2003, according to Dow Jones Market Data. Similarly, it was the strongest such period for the S&P 500 and Dow Jones Industrial Average since 2021.
Labor Day this year is notable not just for the holiday but also because it coincides with a renewed focus on labor and strikes. Additionally, the jobs report for August, set to be released on Friday at 8:30 a.m. Eastern, is expected to show a slowdown in hiring but a relatively low unemployment rate of 3.5%, nearing levels not seen since the late 1960s.
This Labor Day also marks the beginning of a push to bring more workers back to the office, including by the federal government, with plans starting in September and October. However, with interest rates at a 22-year high and the benchmark 10-year Treasury yield above 4%, it’s clear that returning to the office isn’t a one-size-fits-all solution for the struggling office sector.
