US stock futures dropped Wednesday morning as rising oil prices and bond yields put pressure on markets heading into September.
Dow Jones futures fell around 0.2%, S&P 500 futures slipped 0.3%, and Nasdaq-100 futures led losses, dropping 0.6%. It extended a rough Tuesday session where the Nasdaq fell 1%.
Brent crude climbed above $95 per barrel after President Trump threatened to hit Iran “much harder” following a wave of US airstrikes on Tuesday. That threat pushed energy prices up and added to inflation worries already weighing on investors.
Higher oil prices feed into inflation expectations, which in turn push bond yields up. The 10-year Treasury yield rose to 4.79% on Tuesday. The 30-year hit 5.27%.
Rising yields are a problem for stocks because they raise borrowing costs for companies and consumers. They also make bonds more attractive compared to equities.
“Stocks and bond prices can go down together during environments where rates are rising at a fast pace,” said Michael Landsberg, CIO at Landsberg Bennett Private Wealth Management.
He added that bonds are traditionally seen as a buffer against stock volatility, but that relationship breaks down when rates move sharply higher.
Strong earnings from Dell after Tuesday’s closing bell did little to lift investor sentiment. The bond market’s move overshadowed the results.
Trade tensions with Canada also stayed on the radar. Canadian Prime Minister Mark Carney said talks could resume when the US stops “throwing shade” and gets “serious” about negotiations.
JUST IN: Mark Carney declares Canada will only resume trade talks with the U.S. when Americans “stop doing memes”
— Polymarket (@Polymarket) September 1, 2026
Treasury Secretary Scott Bessent pushed back, saying the US is not in a trade war with Canada. The back-and-forth added to a broader sense of uncertainty in markets.
On Wednesday, ADP private-sector jobs data is due out. It will give investors a preview of Friday’s official monthly jobs report.
Job openings have appeared frozen recently, and the labor market data could shift expectations around Federal Reserve rate policy.
Earnings from Broadcom and Snowflake are also scheduled for after the close Wednesday. Both reports will be closely watched given the pressure tech stocks have faced from rising yields.
The Nasdaq has been hit hardest among the major indexes this week. Tech companies are particularly sensitive to higher rates because their valuations depend heavily on future earnings.
As of early Wednesday, E-Mini Dow futures stood at around $52,937, while E-Mini Nasdaq-100 futures were down to $29,068.
Markets face a packed rest of the week with jobs data and key earnings still to come.
The post Pre-Market Update: Stock Futures Fall as Iran War Escalation and Rising Bond Yields Rattle Wall Street appeared first on CoinCentral.
