S&P futures declined on Tuesday, marking the first day of September, as concerns over inflation and high oil prices pushed bond yields higher both in the U.S. and internationally. This development has heightened apprehensions regarding the potential tightening of monetary policy by the Federal Reserve later this month. Futures for the Dow Jones Industrial Average declined by 240 points, representing a decrease of 0.5%.S&P 500 futures declined by 0.5%, while Nasdaq-100 futures experienced a pullback of nearly 1%.
Technology equities experienced a widespread decline. Nvidia, AMD, and Micron experienced declines exceeding 1%. Microsoft experienced a decline of 1%, whereas Alphabet, the parent company of Google, saw a decrease of 0.6%. Global bond yields persisted in their upward trajectory. The yield on the U.S. 10-year Treasury note reached heights not observed since January 2025. Japan’s 10-year note yield has attained its peak since August 1996, whereas Germany’s benchmark yield has ascended to a high not seen since 2011. Yields globally have experienced an uptick as market participants express concerns that sustained elevated oil prices could contribute to inflationary pressures.
Moreover, September has traditionally been a poor month for equities. “The market is exhibiting signs of nervousness across myriad of indicators,” traders wrote, pointing to new American Association of Individual Investors Sentiment Survey data. “This attitude toward risk is not just theoretical, investors are quite literally putting their money where their mouth is in terms of portfolio risk allocations.” U.S. oil prices experienced an increase exceeding 2%, reaching $87.81 per barrel. Brent futures experienced an increase of 1.8%, reaching a trading price of $92.15.
In Asia, Japan’s Nikkei 225 concluded the trading session 0.15% lower, whereas South Korea’s Kospi experienced an increase of 0.23%. Australia’s benchmark index experienced a decline of 0.10%. Mainland China’s CSI 300 finished the day down by 0.30%. European stocks experienced a general decline, as evidenced by the regional Stoxx 600 index, which fell by 0.6% during mid-morning trading. Oil and gas stocks exhibited resilience, advancing by 1.3% in alignment with the upward movement in crude prices.
