Stocks Plunge as Treasury Yields Rise Amid Oil Price Surge

The stock market opened on a sour note in September, as rising Treasury yields and oil prices weighed heavily on the major indexes. The Nasdaq Composite fell by 0.56%, while the Dow Jones Industrial Average slipped by 0.39% and the S&P 500 dropped 0.35%. Apple was the lone bright spot, with its stock price jumping by 3% after the tech giant's new CEO John Ternus took over.

The surge in Treasury yields, which reached a high of around 4.8%, is partly due to concerns about inflation, which has been fueled by rising oil prices. The 10-year Treasury yield has not seen this level since January 2025, and investors are bracing for the possibility of higher interest rates.

The market's focus will shift to Friday's August jobs report, which could provide more clarity on the state of the economy. A weak report could make a rate hike less likely, despite rising inflation. The Federal Reserve has indicated that it may raise interest rates if inflation does not ease convincingly.