Yields Jump, Oil Rally Weighs on Wall Street at September’s Start

U.S. stocks closed lower on the first trading day of September as a global bond selloff pushed Treasuries to multi‑year highs and oil surged on Middle East tensions, sending the Dow down about 419 points, the S&P 500 -0.71%, and the Nasdaq -1.03%. Energy stocks rose on higher crude prices, while most other groups fell. Investors priced in roughly a 68% probability of a 25‑basis‑point Fed rate hike at the end of September, up from a week ago, with concerns about inflation and rate hikes adding to risk‑off sentiment. September’s seasonal weakness and data showing cooling jobs and manufacturing momentum contributed to caution. Moderna jumped about 9.9%, while Dell, Palo Alto Networks, Credo Technology, and MongoDB posted sizable declines.