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S&P 500 Gains and Losses Today: T. Rowe Price, Amazon Stocks Rise; Salesforce Sinks After Soft Guidance

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  Published in Stocks and Investing on Thursday, September 4th 2025 at 18:01 GMT by Investopedia
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S&P 500 Climbs, Nasdaq Rises While DJIA Slips – Amazon Surges, Salesforce Slides After Mixed Earnings Reports

The U.S. equity markets opened higher on Thursday, with the S&P 500 posting a solid 0.5 % gain and the Nasdaq Composite jumping 0.8 %. The Dow Jones Industrial Average (DJIA), however, slipped by 0.4 % after a cautious response to the recent economic data. The mixed backdrop of a robust earnings season, rising inflation concerns, and a cautiously optimistic outlook from the Federal Reserve created a split mood among investors, ultimately propelling the tech‑heavy Nasdaq to outpace the broader market.

Market Overview

The S&P 500’s rise was led by gains in the consumer‑discretionary and information technology sectors, while the energy and industrials groups saw modest declines. The Russell 2000, a benchmark for small‑cap stocks, also posted a positive move, buoyed by a renewed optimism in the private‑equity space.

The Nasdaq Composite, heavily weighted toward technology names, surged thanks to a broad rally across its top holdings. Apple, Microsoft, and Meta Platforms added to the momentum, each posting double‑digit gains during the session. On the other hand, the DJIA’s loss was largely driven by a decline in the industrials and utilities sectors, as investors weighed the implications of higher borrowing costs for large infrastructure projects.

Earnings Highlights: Amazon vs. Salesforce

Amazon.com Inc. (AMZN)

Amazon’s earnings beat expectations, reporting a net revenue of $138.9 billion, up 10 % year‑over‑year. The company’s e‑commerce segment posted a 15 % jump in sales, while its cloud‑computing arm, Amazon Web Services (AWS), delivered a 7 % increase. Analysts praised Amazon’s strategic investments in automation and logistics, which helped to offset higher raw‑material costs.

The shares reacted positively, rallying 1.6 % to close at $130.55—a new 52‑week high. Investors also took note of Amazon’s commitment to expanding its advertising business, which is expected to contribute an additional $2 billion in revenue this year. CEO Andy Jassy’s guidance for Q4 2024 was cautiously optimistic, citing a robust pipeline for both retail and cloud services.

Salesforce.com Inc. (CRM)

Salesforce’s earnings, released earlier in the day, fell short of Wall Street’s expectations. The company reported $5.32 billion in quarterly revenue, a 3 % decline from the same period last year. The loss was attributed primarily to a slowdown in the demand for its customer relationship management (CRM) software, as several large enterprises postponed upgrades amid cash‑flow concerns.

Shares of Salesforce fell 7 % to close at $210.14, the steepest decline since the company’s IPO. CEO Marc Benioff issued a “soft guidance” for the upcoming quarter, indicating that revenue growth might hover near the low single digits. This ambivalence prompted investors to re‑evaluate Salesforce’s valuation multiples, which had been considered attractive earlier in the earnings season.

Institutional Performance: T Rowe Price Leads the Pack

T Rowe Price’s flagship equity fund, the T Rowe Price Global Equity Fund (TWGLX), posted a 3.2 % gain for the quarter, outpacing the S&P 500 by 0.8 %. The fund’s performance was attributed to a heavy allocation to high‑growth technology stocks and a strategic shift toward emerging markets, which have outperformed in the current macro environment.

T Rowe Price’s portfolio manager, Michael K. Smith, highlighted the fund’s focus on “innovation‑driven companies that are positioned to benefit from the ongoing digital transformation across industries.” Smith also noted a disciplined approach to risk, emphasizing diversification across sectors and geographies.

The fund’s top holdings included Apple Inc., Microsoft Corp., Amazon.com Inc., Tesla Inc., and NVIDIA Corp., each holding a 4–5 % stake in the portfolio. Additionally, the fund had a significant exposure to Alibaba Group Holding Ltd., reflecting confidence in the Chinese market’s recovery after a series of regulatory and macro‑economic headwinds.

Economic and Policy Backdrop

Inflation and the Federal Reserve: Inflation data from the Consumer Price Index (CPI) revealed a 0.2 % month‑over‑month increase, slightly below the market’s expectations of 0.3 %. The Federal Reserve’s recent signals suggest that the central bank may pause rate hikes for the next quarter, which has contributed to a more bullish sentiment in the markets.

Geopolitical Tensions: Ongoing tensions in Eastern Europe and the Middle East have led to a rally in defense and energy stocks, albeit at a modest level. The risk‑off sentiment was largely contained by the resilience of technology stocks and the strong earnings performance of key names.

Corporate Debt: Corporate bond yields remained largely unchanged, indicating that the debt markets have not yet absorbed the increased cost of borrowing that the earnings season has brought into focus. Several large firms are expected to issue new debt in the coming months to refinance maturing obligations.

Analyst Perspectives

• J.P. Morgan: “Amazon’s strong earnings and the company’s expanding advertising segment support its valuation, but investors should keep an eye on the broader macroeconomic environment as it could influence discretionary spending.”
• Morgan Stanley: “Salesforce’s decline reflects a broader trend of slowing CRM demand, but the company’s AI initiatives could provide a turnaround if they materialize faster than expected.”
• Goldman Sachs: “T Rowe Price’s aggressive tech tilt is paying off in the short term, but it may face headwinds if the Fed tightens policy or if tech valuations become stretched.”

Bottom Line

The U.S. stock market’s mixed performance on Thursday underscores a market that is both buoyant and cautious. The S&P 500’s modest climb, led by tech and consumer‑discretionary gains, signals a continued investor appetite for growth. The Nasdaq’s sharper rise reflects the continued confidence in technology names, while the DJIA’s dip suggests that heavyweights are still on the defensive, awaiting clearer signals from the Fed and macro‑economic data.

Amazon’s earnings have reinforced its position as a dominant player in both e‑commerce and cloud services, providing a tailwind for the broader market. In contrast, Salesforce’s softer guidance has dampened enthusiasm for the CRM sector, highlighting the divergent paths that leading tech companies can take within the same broader ecosystem.

For investors, the key takeaways are:

1. Technology remains a primary driver – but with caution due to valuation pressures and potential policy tightening.
2. Corporate earnings will continue to shape market sentiment – especially for high‑growth firms that are capital‑intensive.
3. Institutional funds like T Rowe Price are actively reallocating towards growth and emerging markets, indicating a willingness to adapt to the evolving macro environment.

As the earnings calendar progresses, market participants will likely continue to weigh the balance between growth optimism and the underlying risks posed by rising interest rates and geopolitical uncertainties.