Commodities
US Stocks Plunge on Hawkish Fed and Rising Oil Prices
The US stock market ended lower on its first day of trading in September, as rising hostilities in the Middle East drove up oil prices and inflation fears. The S&P 500 dropped 0.71% to 7,631.95 points, while the Nasdaq Composite lost 1.01% to 26,099.77.
The benchmark US Treasury yield continued to edge higher after reaching a 19-month high on Monday, with investors betting that central banks will need to hasten their interest rate hikes. The Federal Reserve's hawkish stance has increased the likelihood of a rate hike in September to 68.2%, up from 39.6% last week.
Energy stocks led the gainers, boosted by rising crude prices, but the Dow Jones Transportation Average and Philadelphia SE Semiconductor Index lagged behind.