Global Markets Sink Amid Rising Treasury Yields and Oil Prices

US stocks fell sharply on Tuesday, September 1, as rising Treasury yields and elevated oil prices weighed heavily on investor sentiment. This decline comes after Wall Street ended August with solid gains, but investors turned cautious ahead of the Federal Reserve's September policy meeting.

The US data releases this week will provide crucial cues on the health of the American economy. The ADP National Employment Report for August is expected to show 47,000 jobs added, compared to 44,000 in the previous month. Additionally, Factory Orders data for July is projected to show a 0.7% rise, a turnaround from the 0.3% decline recorded earlier.

Global bond markets also experienced a fresh wave of selling, 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.