US stocks slid on the first trading day of September as surging Treasury yields, a broader global bond sell-off, elevated oil prices and West Asia con…
1/6US Market: US stocks fell on Tuesday, September 1, the first trading day of September, as rising Treasury yields, elevated oil prices and renewed uncertainty over the West Asia conflict weighed on investor sentiment. The declines came after Wall Street ended August with solid gains, with investors turning cautious ahead of the Federal Reserve’s September policy meeting and reassessing the outlook for interest rates.
2/6US data watch: Markets will track a trio of releases this week for fresh cues on the health of the American economy. The ADP National Employment Report for August, due at 8:15 AM, is expected to show 47,000 jobs added, compared with 44,000 in the previous month. At 10:00 AM, Factory Orders data for July is projected to show a 0.7% rise, a turnaround from the 0.3% decline recorded earlier. Later in the day, at 2:00 PM, the Federal Reserve will release its Beige Book, offering a qualitative read on economic conditions across its districts ahead of the next policy meeting. Together, these releases will help gauge the pace of hiring, manufacturing demand and the broader economic outlook heading into the Fed’s next decision.
3/6Global Bonds Slide: A fresh wave of selling swept through global bond markets, dragging equities lower on Wall Street as investors reassessed the outlook for interest rates and government borrowing worldwide. The US 10-year yield hit its highest level since January 2025, while the 30-year yield moved close to levels last seen before the Treasury’s intervention on August 19, signalling renewed pressure at both ends of the curve. The sell-off was not confined to the US — Japan’s 10-year yield touched its highest level since 1996, and 10-year yields in Germany and France climbed to multi-year highs, underscoring that the rise in borrowing costs is a broad, global phenomenon rather than a US-specific move.
4/6Euro Zone Inflation: Euro zone inflation rose back above 3% in August on higher energy costs, cementing an already solid case for another European Central Bank interest rate hike this month as the Iran war keeps putting upward pressure on prices. Inflation in the 21 nations sharing the euro accelerated to 3.3% in August from 2.9% in July, driven almost entirely by higher energy costs as crude oil and natural gas prices both rose, and refiners bumped up their margins, data from Eurostat showed on Tuesday.
5/6Fund Flow: Foreign institutional investors (FIIs) were net buyers in equities to the tune of ₹1,143.38 crore today (provisional), while domestic institutional investors (DIIs) also remained net buyers, purchasing equities worth ₹1,846.94 crore (provisional).
6/6US Iran war: Iran said on Tuesday September 1, it would “immediately” reciprocate if Washington returned to the terms of a June memorandum of understanding, opening the door to reviving a peace framework that lapsed weeks ago even as fresh military clashes pushed the conflict into a more dangerous phase.
