Market Recap 9/1/26
Wall Street opened September on the back foot. Stocks closed lower across the board as Treasury yields climbed and oil prices jumped amid fresh tensions in the Middle East.
The Dow fell 419 points, or 0.79%, to 52,767. The S&P 500 dropped 0.71% to 7,631. The Nasdaq lost 1.03% to 26,100, with the Nasdaq 100 off even more. It was the third straight down day for the major indexes after a mostly positive August. Tech and consumer discretionary led the losses. Energy was one of the few bright spots. Transports slid more than 2.5%.
Rates kept running. The 10-year Treasury yield rose to around 4.78–4.79%, its highest level since January 2025. The 30-year stayed elevated near 5.25–5.28%. A global bond sell-off continued, with Japan’s 10-year yield hitting 3% for the first time in 30 years. Markets are now pricing in a higher chance of a Fed rate hike later this month.
Oil ran hard. WTI crude settled above $90 for the first time in over a month, up more than 5% to about $90.22. Brent jumped 4.6% to $94.65. Fresh U.S. strikes on Iranian targets, after Iranian attacks on ships and bases, revived supply fears around the Strait of Hormuz. That combination of higher energy prices and rising yields is not a friendly mix for equities.
The VIX moved higher as well, reflecting the uneasy tone.
Gold and silver sold off as yields and the dollar firmed. The backdrop is straightforward and not great: geopolitics pushing oil up, inflation worries keeping the Fed hawkish, and a bond market that is not cooperating. September is already living up to its reputation as a historically weak month for stocks (especially in a mid-term year). Watch job data later this week and any further developments in the Middle East.
It’s a great time to do nothing except look for stocks you love that are getting cheaper. It seems any trades I have personally done lately are down before my finger leaves the buy button. It’s that tough right now.
The market needs a positive catalyst; if we don’t get one, it will eventually just wear itself out to the downside.
Sit tight; let the setups come to us.