Stock market today: Dow, S&P 500, Nasdaq drop as rising bond yields, oil prices weigh on stocks

LIVE Stock market today: Dow, S&P 500, Nasdaq drop as rising bond yields, oil prices weigh on stocks Grace O'Donnell · Editor, Special Projects Updated Tue, September 1, 2026 at 5:54 PM GMT+2 2 min read ^IXIC ^DJI ^GSPC CL=F ^TNX US stocks moderated their slide on Tuesday morning as uncertainty around the war in Iran, a bond market sell-off, and speculation about the Fed's next interest rate move kept buyers on the sidelines. The Dow Jones Industrial Average ( ^DJI ) recovered to a loss of roughly 0. 1% after initially falling by 0.

7%, while the S&P 500 ( ^GSPC ) lost 0. 3%. The tech-heavy Nasdaq Composite ( ^IXIC ) was down by roughly 0.

7% after initially dropping 1. 3% after stocks closed August with solid gains. Stocks entered September with double-digit year-to-date returns and earnings expectations that continue to rise .

However, volatile oil prices and the potential return of Fed rate hikes have given investors reason to worry heading into the historically weakest month for stocks. US bond yields continued their march higher on Tuesday, with the 10-year yield ( ^TNX ) rising to 4. 75%, its highest intraday level since January 2025, before ticking down to 4.

76%. The 30-year ( ^TYX ) climbed to 5. 27%, hovering near multi-decade highs, before also pulling back to 5.

24%. Crude oil prices also remained elevated after the US and Iran returned to a hot war, with Brent futures ( BZ=F ), the global benchmark, trading above $92 per barrel. According to Bloomberg , two oil tankers were struck while attempting to exit the Strait of Hormuz in the latest sign that the conflict could reescalate.

The Job Openings and Labor Turnover Survey (JOLTS), out at 10 a. m. ET, showed job openings ticked up just slightly in July, a somewhat stable read on hiring ahead of the monthly jobs report on Friday.

Data from the Institute for Supply Management showed that US manufacturing activity expanded for the eighth month in a row, though the sector's rate of expansion slowed just slightly. The gush of second quarter earnings reports may have slowed to a trickle, but releases from Dell ( DELL ) and Palo Alto Networks ( PANW ) will give insight into how big corporations are spending money on tech and cloud services. LIVE 10 updates 6 mins ago Jake Conley Oil prices rise as supertankers struck in Strait of Hormuz Oil prices continued to rise on Tuesday after news early in the morning that two oil supertankers had been struck inside the Strait of Hormuz, sending renewed jitters through the market of a renewed flare-up in the Middle East conflict.

Futures on Brent crude ( BZ=F ), the international benchmark, rose by roughly 2. 5% to cross $92. 50, a roughly weeklong high.

Those on US benchmark WTI crude ( CL=F ) picked up a strong 2. 8% to trade above $88, once again beginning the climb toward $90. Two oil supertankers — one each owned by Saudi Arabian and South Korean shipping companies — attempting to exit the strait through Tuesday morning were struck by projectiles, a maritime risk consultancy said Tuesday.

No one has yet claimed responsibility for the attacks, but they come after a flare-up over the weekend of US-Iran hostilities, which saw US airstrikes on Iranian rocket launchers answered by attempted strikes inside Jordan and the UAE. The conflict over the weekend — the first proper return to kinetic action in roughly a month — has renewed worries over the state of the global energy complex, even as oil output from the Persian Gulf has returned to roughly two-thirds of pre-war levels, per Goldman Sachs. Much of that oil is being exported from the region via pipelines to the Red Sea and the Gulf of Oman.

Speaking on Tuesday, US Treasury Secretary Scott Bessent said the Strait of Hormuz would soon be "worthless" on account of current pipeline capacity and plans for future development of increased pipeline routes around the waterway, which, before the war, was responsible for roughly a fifth of the global oil trade. "That will be bypassed in two years," Bessent said in a fireside chat at the G20 finance chiefs meeting in Asheville, N. C.

"In two years, the Strait of Hormuz will be like a worthless piece of water. " Today at 2:53 PM UTC Jake Conley Hiring and layoff data shows little change for labor market in July ahead of Friday's August jobs report Job openings and hirings remained roughly flat in July, per Labor Department data out Tuesday, reinforcing what economists have called a "low hire, low fire" job market. 7.

3 million positions were open in July, compared to June's revised count of 7. 2 million, per the Labor Department's JOLTS report. Hirings, meanwhile, moderated to 5.

1 million in July from June's 5. 3 million workers hired into new roles. In a slightly positive sign for workers, the layoffs rate fell to 1% from the previous month's 1.

1%, a small decline that reinforces the "low fire" aspect of "low hire, low fire. " The quits rate was 1. 9%, compared to June's 2% rate.

All of this data comes as a preview to Friday's nonfarm payrolls report. Economists are looking for 55,000 jobs added to the economy in August, per Bloomberg consensus estimates, as the labor market looks for a turnaround from a loss of 23,000 jobs in July. Read more.

Today at 2:28 PM UTC Jake Conley Bank of America raises Microsoft price target to $600 from $500, citing growth outlook Bank of America on Tuesday raised its price target on Microsoft ( MSFT ) to $600 from $500 as analysts take a positive view on "accelerating cloud growth, improving AI efficiency and greater return visibility. " With the stock trading at $503 Tuesday morning, the bank's new price target would represent an appreciation of rougly 19% for Microsoft shares. Coming off strong earnings for the Magnificent Seven stalwart, BofA analysts led by Tal Liani cited strength throughout the company's AI strategy, with a focus on two fronts.

The first of those is Microsoft's decision to construct a wide portfolio of AI models, allowing users to allocate work to different models depending on the task. The second is Microsoft's infrastructure engineering push for integration throughout chips, models, and apps to improve return on investment, efficiencies that could "lower the cost of serving AI workloads, support margins and improve ROIC over time. " The company's recent earnings report showed strong signs that Microsoft's bets are paying off, the analysts said.

Liani and his team cited Azure growth accelerating to 43% in the fourth quarter of 2026 from 39% in the third quarter; paid Microsoft 365 net seat additions doubling quarter-on-quarter; and remaining performance obligations (RPOs) increasing 84% year to date. Today at 1:41 PM UTC Grace O'Donnell Rising bond yields, oil prices put pressure on stocks Stocks kicked off a new month of trading in the red as a bond sell-off and a jump in oil prices weighed on sentiment. The 10-year Treasury yield ( ^TNX ) is currently at its highest level in over a year and a half.

Gold ( GC=F ) and bitcoin ( BTC-USD ) declined. The Dow Jones Industrial Average ( ^DJI ) fell by 0. 5%.

The S&P 500 ( ^GSPC ) declined by about 0. 7%. And the tech-heavy Nasdaq Composite ( ^IXIC ) dropped by 1.

4%. Here's a look at the sector action in the first few minutes of trading as the tech sector ( XLK ) and consumer discretionary stocks ( XLY ) were under pressure. AlphaSpace heatmap Today at 1:10 PM UTC Grace O'Donnell Shein gets a cool response to its Hong Kong IPO Shein ( 0625.

HK ) stock hit the public markets in Hong Kong on Tuesday, and the response was tepid. Shares of the fast-fashion brand plunged over 9% from their IPO price of HK$48. 56 per share ($6.

19) in the first minutes of trading. Shares recovered throughout the trading day but still closed slightly below the IPO price. At close, Shein's market capitalization stood at $26.

5 billion, a fraction of its private market valuation of $100 billion in 2022. The company had previously tried to list in New York and London to no avail. The removal of the de minimis tariff exemption — a loophole that allowed small packages to be shipped to the US tariff-free — has caused a headache for the Chinese e-commerce site, and competition from TikTok shop, Temu, and others has created headwinds for the company.

Today at 12:00 PM UTC Jared Blikre Software stocks crushed chips in August. History says September gets tougher. Software just posted its second-best month since 2002.

Meanwhile, chip stocks barely held on to a gain in August after being up nearly 10% mid-month. The iShares Expanded Tech-Software Sector ETF ( IGV ) surged over 16% in August, while the iShares Semiconductor ETF ( SOXX ) finished up only 1%. The S&P 500 gained just over 2.

5%. For a while, chips were keeping pace. But in the final two weeks of the month, SOXX gave back most of its rally while software kept pushing higher.

And chips weren't alone. The companies supplying the physical guts of the AI boom — electrical equipment, power infrastructure, networking gear, and construction — had all surged into mid-August. Then those trades rolled over together, while software kept climbing.

That extended a record divergence between software and chip stocks that was already opening up earlier in August. Read more. Today at 11:00 AM UTC Grace O'Donnell Why Toyota and Honda would get hit hardest by Trump's Canadian auto tariffs Yahoo Finance's Pras Subramanian reports: In something of an unexpected consequence, Japanese automakers Toyota ( TM ) and Honda ( HMC ) have more to lose than any US automaker from President Trump's threatened tariffs on Canadian-built vehicles.

In a note to clients, JPMorgan Securities' head of global auto equity research Jose Asumendi noted that Canadian-built vehicles accounted for nearly a quarter of Honda's US sales last year, and 17% of Toyota's. Trump has threatened to impose 50% tariffs — double the current 25% rate — on autos, trucks, and car parts imported from Canada starting Jan. 1, 2027.

The conventional thinking had been that Big Three automakers GM ( GM ), Ford ( F ), and Stellantis ( STLA ) would suffer the biggest financial hit from tariffs on Canadian goods. But the two Japanese carmakers produce more than three-quarters of all cars made in Canada, per Reuters , and new tariffs could force them to shut some of their Canadian assembly lines because production would be economically unfeasible. Read more.

A trailer full of cars leaves Honda's automotive assembly plant in Alliston, Ontario, Canada, April 1, 2025. REUTERS/Carlos Osorio · Reuters / REUTERS Today at 10:00 AM UTC Grace O'Donnell Stocks brace for 'September Effect' September could be a bumpier month for stocks, if history is any guide. According to Carson Group's Ryan Detrick , September is the weakest month of the year for stocks.

The S&P 500 ( ^GSPC ) is down 0. 6% on average during the pumpkin spice month and generates a positive return only 45% of the time. Along with February, September is the only other month of the year with a negative return on average.

Volatility also tends to spike , with this year's midterm elections throwing another wrench into things. But these are just trends, and seasonality isn't what's driving markets. While LPL Financial chief technical strategist Adam Turnquist expects more volatility ahead, it could also present some buying opportunities for investors.

"There's a lot of macro variables right now that I think can fuel upside in volatility," Turnquist told Yahoo Finance on Monday, citing geopolitical tensions and rising bets of a Fed rate hike. "The earnings story is great, but we're not in that chapter right now for the market until we get to the next reporting season," Turnquist added, "so I do think the setup here, base case, [is] higher volatility and potentially a buying opportunity if we get some drawdown. " Today at 9:00 AM UTC Grace O'Donnell Good morning.

Here's what's happening today. Economic data: S&P Global US manufacturing PMI, August final reading (53. 3 expected, 53.

2 previously); ISM manufacturing, August (55. 2 expected, 55. 6 previously); ISM prices paid, August (71.

2 expected, 71. 1 previously); ISM new orders, August (57 expected, 56. 7 previously); ISM employment, August (52.

5 expected, 52. 8 previously); Construction spending, month-on-month, July (0% expected, -0. 1% previously); JOLTS job openings, July (7.

3 million expected, 7. 359 million previously); JOLTS quits rate, July (+2% previously); JOLTS layoffs rate, July (+1. 1% previously); Dallas Fed services activity, August (6.

6 previously); Omdia total vehicle sales, August (16. 3 million expected, 16. 33 million previously) Earnings calendar: Palo Alto Networks ( PANW ), Dell Technologies ( DELL ), Medtronic ( MDT ), MongoDB ( MDB ) Catch up on some top stories from overnight: SEC chairman moves to give US states power over shareholder resolutions Apple says OpenAI is destroying evidence in trade secrets case Trump strikes Medicaid drug price deals with nine pharma firms State Farm sued by Los Angeles County for allegedly mishandling wildfire claims AI could cause global economic downturn, Andrew Bailey warns G20 Today at 8:00 AM UTC Grace O'Donnell Oil extends gains, stocks drop as Trump issues fresh Iran warning The AFP reports: Oil prices extended gains Tuesday amid fears of a fresh bout of military exchanges between the United States and Iran following a flare-up at the weekend and Donald Trump's warning that he will hit the country "hard".

The latest bout of strikes between the foes has further stoked worries about inflation that has put pressure on central banks to hike interest rates, which has in turn jolted equity markets. After six months of war, the conflict remains at an impasse, with Tehran keeping the strategic Strait of Hormuz closed and Washington continuing a counter-blockade of Iranian ports. The United States carried out strikes on an Iranian island in the waterway on Sunday, with Tehran quickly retaliating by attacking US military targets in the Middle East.

The exchange raised fears of a return to major hostilities, with the US president vowing to respond. "We're going to hit them hard," Trump said, according to a Fox News reporter who spoke to him briefly. "There will be a response.

" Read more.