Wall Street headed into the red, bond markets are twitchy, while oil keeps pushing higher

• Nasdaq futures fell 0.6% while S&P declined 0.2% on war jitters; President Trump warned of hitting Tehran 'much harder' if Iran retaliates
• Brent crude pushed above $95 per barrel after latest US strikes on Iran, adding pressure to inflation expectations
• Bond market volatility increased with 10-year Treasury yields jumping to 4.79% and 30-year yields reaching 5.27%; ADP jobs data and earnings from Broadcom, HP and Snowflake due

Market Summary: Geopolitical Tensions Weigh on Equities as Oil Surges

U.S. stock futures traded lower on September 2, 2026, as escalating geopolitical tensions continue to pressure markets. The Nasdaq declined 0.6%, the S&P 500 fell 0.2%, while the Dow remained flat. Investor sentiment has been dampened by ongoing conflict concerns and rising commodity prices.

Oil and Geopolitical Risk

Brent crude surged above $95 per barrel following recent U.S. military strikes on Iran. President Trump escalated rhetoric, warning of stronger retaliation if Iran responds, intensifying market anxiety about potential supply disruptions and broader Middle East instability.

Bond Market Volatility

Treasury yields climbed sharply as inflation concerns resurface. The 10-year yield jumped to 4.79%, while the 30-year yield reached 5.27%, reflecting growing unease about persistent price pressures and their implications for Federal Reserve policy.

Trade Tensions with Canada

U.S.-Canada relations remain strained ahead of trade negotiations. Canadian Finance Minister Mark Carney urged Washington to reduce tensions, though U.S. Treasury Secretary Bessent downplayed concerns, stating no trade war exists.

Key Economic Data and Earnings

Investors await the ADP employment report as a preview to Friday's crucial non-farm payrolls data, which will provide insight into labor market strength. After the closing bell, major earnings reports are expected from technology and enterprise software companies including Broadcom, HP, and Snowflake.

Market Outlook

The combination of geopolitical uncertainty, rising energy prices, and elevated bond yields creates a challenging environment for equities, particularly growth-sensitive technology stocks. Focus remains on employment data and corporate earnings for near-term market direction.