US stock indices open higher on Friday; Nasdaq Index up 0.72%; S&P 500 Index up 0.44%; Dow Index up 0.21%

US stock indices open higher on Friday; Nasdaq Index up 0.72%; S&P 500 Index up 0.44%; Dow Index up 0.21%

US stock indices opened higher on Friday, September 2, 2025, with the Nasdaq Index up 0.72%, the S&P 500 Index up 0.44%, and the Dow Index up 0.21%. The positive sentiment was driven by a combination of factors, including a strategic partnership between T. Rowe Price and Goldman Sachs, and encouraging data on the labor market. However, concerns over Federal Reserve politics and trade tariffs also influenced market dynamics.

The Nasdaq Index climbed 0.72% to 21,575.16, led by gains in tech stocks. Salesforce (CRM) and C3.ai (AI) both reported disappointing earnings, but Amazon (AMZN) rose 3.5% after JetBlue Airways (JBLU) agreed to deploy its Project Kuiper satellite broadband. The S&P 500 Index gained 0.42% to 6,475.57, with retail names like American Eagle Outfitters (AEO) and Gap (GPS) performing strongly. The Dow Jones Industrial Average (DJIA) advanced 0.48% to 45,489.86, buoyed by industrial and consumer discretionary stocks.

The partnership between T. Rowe Price and Goldman Sachs, announced on Thursday, is expected to have a significant impact on the retirement market. Goldman Sachs agreed to invest up to $1 billion in T. Rowe Price and collaborate on private-market offerings aimed at retirement savers. The deal reflects Wall Street's push to deliver less liquid, higher-returning strategies to 401(k) accounts, a space traditionally dominated by low-cost stock and bond funds. This strategic move is aimed at addressing client needs and putting the firm back on a growth trajectory [1].

The labor market data also contributed to the positive sentiment. The ADP report showed just 54,000 private jobs were added in August, well below expectations, but the unemployment rate rose to 4.3%, suggesting a cooling jobs market. Nonfarm payrolls are expected to be announced on Friday, which could provide further insights into the labor market's health [2].

However, Federal Reserve politics continue to cloud the market outlook. President Trump's push to secure Stephen Miran as Fed governor before the September 16-17 policy meeting has raised questions over central bank independence. The Justice Department's criminal probe into Fed Governor Lisa Cook further complicates the backdrop. Bond markets reflected the unease, with the U.S. 10-year yield holding near 4.182%, down modestly on weaker job data. Rate futures still assign a 97% chance of a 25 bp cut later this month, but investors are factoring in heightened policy risk [2].

Trade tariffs remain a concern, with Trump's administration escalating efforts to push "reciprocal" tariffs through the Supreme Court. The White House estimates $750 billion–$1 trillion in tariffs could accumulate by mid-2026 if upheld. This uncertainty clouds multinational earnings, particularly for firms with heavy China or Mexico exposure such as Apple (AAPL), Tesla (TSLA), and PDD Holdings (PDD) [2].

In summary, the US stock indices opened higher on Friday, driven by a strategic partnership between T. Rowe Price and Goldman Sachs, and encouraging labor market data. However, concerns over Federal Reserve politics and trade tariffs continue to influence market dynamics.

References:
[1] https://www.citybiz.co/article/740710/t-rowe-stock-rallies-on-1-billion-goldman-deal-to-expand-in-retirement-market/
[2] https://www.tradingnews.com/news/stock-market-today-nasdaq-sp500-dow-advance-as-fed-politics-loom