Dow Plunges Amid Rising Yields and Oil Prices

The Dow Jones Industrial Average began trading lower on September 1, following a weaker session for U.S. stocks on Monday.

Rising Treasury yields and higher oil prices added pressure to investor sentiment as markets prepare for a series of U.S. labor-market reports that could influence the Federal Reserve's interest-rate decision this month.

The latest move follows a decline in the Dow Jones Industrial Average by 0.70%, with the S&P 500 falling 0.33% and the Nasdaq slipping 0.12%. Despite Monday's losses, all three major indexes recorded monthly gains in August, with the Dow posting its fifth consecutive monthly advance.

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. Reuters reported that markets were pricing in roughly a 65%-66% probability of a September Fed rate hike, up substantially from before Warsh's Jackson Hole comments.