Market Report, 2026-03-04

Stocks recovered from Tuesday’s fallout as positive signals from economic data outweighed the risks stemming from the conflict in the Middle East. Not only did the employment picture look better than expected, but U.S. services also expanded at a remarkably fast rate, with the services gauge hitting a three-and-a-half-year high, while global services expanded at a much slower pace. While still rising, cost pressures for American services are expanding much more slowly than in the prior month. Sectors such as real estate, retail, and transportation reported strong growth.

All major U.S. stock indices ended the day in the green. The Dow Jones Industrial Average rose 238 points to 48,739. The NASDAQ advanced 1.51% to 25,094, and the S&P 500 gained 0.78% to 6,870. The rally was broad-based, with most sectors ending the trading day with gains except for consumer staples, energy, and materials.

As economic data became more reassuring, the bond market retreated, with the U.S. 5-year Treasury yield rising 5 basis points to 3.68% and the 10-year yield rising 4 basis points to 4.1%. Gold also stabilized after yesterday’s drop, and Bitcoin gained more than 7%, reaching above the 73,000 mark.

Another important release today is the Federal Reserve’s Beige Book, which summarizes qualitative information across the country. The report cited that most regions experienced slight to modest expansion, while the labor market remains stable but is cooling. Inflation continues to be a problem, but there are signs of easing. Consumers continue to show mixed spending patterns, with some households pulling back on big purchases. Overall, businesses are cautiously optimistic but uncertain.

There will be weekly jobless claims, a productivity report, and the import price index released tomorrow. We will continue to provide updates to you. This is Adams Wealth Advisors, and thank you for listening.