Dow Falls Ahead of US Jobs Data as Oil Prices Soar
US stock futures fell on September 1 as rising Treasury yields and higher oil prices weighed on investor sentiment. The Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all traded lower in early trading.
The pressure on investors came from a combination of factors, including the renewed rise in oil prices. Brent crude climbed above $91 a barrel due to increased tensions between the US and Iran, which may lead to supply disruptions and higher inflation pressures.
Rising Treasury yields are also adding to the market's pressure. The 10-year yield reached its highest level since January 2025, making fixed-income investments more attractive relative to stocks while increasing borrowing costs for companies and consumers.
Investors are closely tracking the Federal Reserve after Chair Kevin Warsh's recent comments reinforced concerns that policymakers could keep monetary policy tight if inflation remains above the central bank's 2% target. Markets are pricing in a roughly 65%-66% probability of a September Fed rate hike, up substantially from before Warsh's Jackson Hole comments.