US stocks fell in the first sessions of September as inflation concerns grew and oil prices rose. This pushed bond yields higher and raised questions about the likelihood of the Federal Reserve tightening its monetary policy later this month.
Indicator performance
- Dow Jones: down by about 363 points (-0.7%)
- S&P 500: down 0.7%
- Nasdaq Composite: biggest loss of 1.3%
The biggest pressure came from the technology sector: Nvidia, AMD and Micron Technology fell by about 2% each, while Microsoft and Alphabet fell by more than 1%.
Bond yields
The yield on US Treasury bonds with a 10-year maturity rose to its highest level since January 2025. In Japan, the government bond yield reached its highest level since August 1996, and in Germany its highest level since 2011.
Oil adds pressure
US crude rose by more than 2% to trade above $88 per barrel, while Brent gained more than 2% near $92, amid concerns about the repercussions of military tensions in the Middle East on energy supplies — after the resumption of military operations between the United States and Iran, and an attack with unknown munitions on an oil tanker in the Strait of Hormuz on Monday.
Geopolitical escalation
President Trump threatened to respond to Iranian attacks that targeted US bases in the region, saying in remarks to Fox News that Washington "will hit them hard," which increased fears of an escalation and its impact on energy markets and financial assets.
Overview
Goldman Sachs’ traders pointed to signs of strain among investors reflected in retail investor sentiment data, with the month ahead historically among the hardest periods for stocks. Attention now turns to inflation and the labor market data before the next Federal Reserve meeting in about two weeks.
*This content is for informational purposes and is not investment advice.