US Stock Market Crashes on September 2 Amid Rising Bond Yields and Oil Prices
The US stock market experienced a crash on September 2, 2026, as indices Dow Jones, Nasdaq, and S&P 500 plummeted by 1% each overnight. The downturn was attributed to rising bond yields and elevated oil prices.
Seven out of 11 S&P 500 sectors started the month on a bearish note, with consumer discretionary, industrials, and materials emerging as top underperformers. Tech stocks also took a hit, with Nvidia, Amazon, Tesla, Microsoft, Samsung, Alphabet, Micron Technology, Oracle, and Dell experiencing significant losses.
Joseph Mazzola, Head Trading & Derivatives Strategist at Charles Schwab, noted that rising Treasury yields are a major headwind for the market. The 10-year US treasury yield climbed to 4.8%, its highest level since October 2023, while the 30-year treasury yield rose to 5.28%.
The chances of a rate hike at the Fed's September meeting reached 66%, according to the CME FedWatch Tool, up from 40% a week ago. Meanwhile, crude oil prices extended their rally, with US WTI crude and Brent crude rising by nearly 1% each to trade near $91 per barrel and $96 per barrel.
Looking ahead to economic data releases, analysts expect the ADP private payrolls data and the Fed's Beige Book to provide key insights. Quarterly earnings from major companies such as Broadcom, Hewlett Packard, and Snowflake will also influence market sentiment.