EB Daily Market Report - Friday, September 4, 2026

Dear Members:

The jobs report from this morning far exceeded expectations with over 160,000 jobs added during August and a low unemployment rate of just 4.1%. So far reaction to the numbers has been negative with all of the major indexes lower we get ready to close out another trading week.

A few observations:

First, earlier in the session the 10-year government bond hit its highest level since October 2023. It's since come off the day's high but remains at a level that has traders on edge. Next, despite the negative market reaction, the $VIX is actually lower, dipping into the 13s earlier in the session—a level not seen since December of last year. Hardly market panic. And, all of the major indexes remain above key technical levels.

If you set aside the notion of higher interest rates, the bulls can point to the strong job numbers and a resilient economy. It's a trade off for sure but worries would likely be much greater if the jobs numbers were bleak.

We should keep in mind that we are right at the beginning of the most challenging market month of the year. This could keep a lid on stocks for a while. On the other hand, the bears haven't made a credible case to avoid equities with the range on the S&P currently 7816 to the upside and 7600 a level the bulls would like to hold.

Tom will be back with his Weekly Market Report on Monday.

At your service,

John Hopkins