[New York Stock Exchange] U.S. Treasury Yields, Oil Prices Surge... Nasdaq Drops Over 1%
International Oil Prices Surge Over 3%
Tech Stocks Weaken
As tensions surrounding the Strait of Hormuz rise once again, international oil prices have increased. In turn, mounting concerns over inflation have led U.S. Treasury yields to surge, causing all three major indices on the New York Stock Exchange to decline in trading on September 1 (local time).
As of 9:45 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was trading at 52,961.53, down 224.37 points (0.42%) from the previous trading day. The S&P 500 Index, focused on large-cap stocks, dropped by 52.18 points (0.68%) to 7,633.96, while the tech-heavy Nasdaq Composite fell 325.92 points (1.24%) to 26,044.96.
The market on this day is being pulled down by technology stocks, which tend to be sensitive to rising interest rates. Notable declines are seen in Nvidia (down 2.30%), AMD (down 3.52%), and Micron Technology (down 2.51%). Microsoft (down 0.39%) and Alphabet (down 1.26%) are also showing negative trends.
Within the market, concerns are growing that the recent increase in international oil prices could reignite inflationary pressures and impact the Federal Reserve's monetary policy trajectory. The Federal Reserve is scheduled to hold its Federal Open Market Committee (FOMC) meeting in about two weeks.
The backdrop for the rise in international oil prices is heightened tension in the Middle East. The previous day, an oil tanker passing through the Strait of Hormuz was struck by three unidentified projectiles. U.S. President Donald Trump also warned in an interview with Fox News that “we will strike them hard” in response to Iran’s recent attack on a U.S. military base.
In response, international oil prices continued their upward momentum. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for October delivery was trading at $88.36 a barrel, up 3.04% from the previous session. On the ICE Futures Exchange, Brent crude for November delivery traded at $92.74 a barrel, up 2.50% from the previous close.
Amid these concerns, global government bond yields also rose across the board. The yield on the U.S. 10-year Treasury reached its highest level since January 2025. Japan’s 10-year government bond yield climbed to its highest since August 1996, while Germany’s benchmark bond yield rose to its highest point since 2011.
Investor sentiment appears to be weakening as well. Goldman Sachs traders referenced recent American Association of Individual Investors (AAII) sentiment surveys and stated, “The market is showing signs of tension across various indicators.” They further analyzed that investors are reducing the proportion of risk assets in their actual portfolios.
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Additionally, the seasonal factor that September has historically been a weak month for the U.S. stock market is adding pressure on investor sentiment. According to CNBC, the market is expected to closely watch movements in international oil prices and government bond yields for the time being, while trying to gauge the Federal Reserve's future interest rate path.
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