Global Stocks Reel as Bond Yields Hit Multi-Decade Highs, Oil Jumps on US-Iran Conflict

MARKETWIRE Thursday, September 3, 2026

Markets · Global Equities

Global Stocks Reel as Bond Yields Hit Multi-Decade Highs, Oil Jumps on Renewed US-Iran Conflict

Wall Street snapped a three-day slide Wednesday even as Asian equities tumbled Thursday, with Japan's Nikkei sinking to a four-week low. A surging global bond sell-off and rising crude prices are rattling investors ahead of Friday's US payrolls report.

By MarketWire Staff  ·  Updated 07:40 ET  ·  Data verified via CNBC, Yahoo Finance, TradingView, Business Standard, Reuters

S&P 500 7,666.60 ▲ +0.46% Dow Jones 53,061.95 ▲ +0.56% Nasdaq 26,217.83 ▲ +0.45% Nikkei 225 64,325.59 ▼ -2.85% Hang Seng 25,251.92 ▼ -0.31% Kospi 6,562.72 ▼ -3.99%

Wall Street Snaps Losing Streak US equities closed higher on Wednesday, September 2, as a rally in Treasury yields paused and a Federal Reserve official pushed back on expectations that a September rate hike was a lock. The S&P 500 rose 0.46% to 7,666.60, the Nasdaq Composite gained 0.45% to 26,217.83, and the Dow Jones Industrial Average climbed 295.07 points, or 0.56%, to 53,061.95. The move snapped a three-day losing streak across all three major benchmarks. Nine of the 11 S&P sectors finished higher, led by materials, up 1.6%, while real estate lagged, down 0.6%. Nvidia was the Dow's best performer, up more than 3%, while Honeywell was the biggest percentage decliner. The 10-year Treasury yield touched its highest level since November 2023 during the session before easing slightly into the close. The rebound followed a rough start to September: on Tuesday, September 1, the Dow shed 419.02 points (0.79%) to 52,766.88, the S&P 500 fell 0.71% to 7,631.47, and the Nasdaq dropped 1.03% to 26,099.77 — marking the worst session for the Dow and S&P since August 20, as fresh US strikes against Iran sent oil prices and bond yields sharply higher. “Renewed hostilities in the Middle East sent crude prices surging, driving Wall Street lower and global bond yields to multi-year — and in some cases, multi-decade — highs.” Asia Slides Thursday, Led by Japan and South Korea Asian markets sold off broadly on Thursday. Japan's Nikkei 225 fell 2.85% to 64,325.59, a four-week low, as rising Japanese Government Bond yields and climbing oil prices weighed on sentiment. Japan's 10-year JGB yield touched 3% for the first time since 1996, and Bank of Japan Governor Kazuo Ueda flagged rising price risks, reinforcing bets on a rate hike later this month. Technology and AI-linked names led the decline: SoftBank Group slid 6.4%, Tokyo Electron fell 3.4%, Taiyo Yuden lost 4.6%, and Advantest dropped 2.5%. South Korea's Kospi was the region's worst performer, down nearly 4%, while Hong Kong's Hang Seng slipped 0.31% to 25,251.92 and mainland China's Shanghai Composite fell 0.86% to roughly 3,946. India's benchmarks also retreated, with the Sensex down 0.45% to 76,570.35 and the Nifty 50 off 0.59% to 23,914.45 What's Driving It: Oil, Bonds and Iran The common thread across markets is a global bond sell-off tied to escalating US-Iran tensions. A tanker was struck by projectiles while transiting the Strait of Hormuz earlier this week, and renewed US strikes against Iran have pushed Brent and WTI crude sharply higher. Rising oil prices are stoking inflation fears just as central banks weigh their next moves — a combination that has driven US 30-year Treasury yields to levels not sustained this long since 2006. Gold has moved lower even amid the risk-off tone, recently trading near $4,409 an ounce, while Bitcoin has pulled back to around $78,150. The Cboe Volatility Index (VIX) has ticked up toward the 16 level, reflecting rising hedging demand. By the Numbers Index Level Change Session S&P 500 7,666.60 +0.46% Wed, Sept 2 Dow Jones Industrial Avg 53,061.95 +0.56% Wed, Sept 2 Nasdaq Composite 26,217.83 +0.45% Wed, Sept 2 Nikkei 225 (Japan) 64,325.59 -2.85% Thu, Sept 3 Hang Seng (Hong Kong) 25,251.92 -0.31% Thu, Sept 3 Shanghai Composite 3,945.52 -0.86% Thu, Sept 3 Kospi (South Korea) 6,562.72 -3.99% Thu, Sept 3 Sensex (India) 76,292.14 -0.85% Thu, Sept 3 Nifty 50 (India) 23,818.75 -0.99% Thu, Sept 3 US 10-Yr Treasury Yield 4.77-4.78% Multi-yr high This week Gold (spot) $4,409/oz -1.62% Sept 1 WTI Crude $87.92 +2.55% Sept 1 Bitcoin $78,150 -1.35% Sept 1 VIX 15.95 +6.90% Sept 1 What to Watch Investors are looking ahead to Friday's US nonfarm payrolls report for further clues on labor market health, after ADP data showed private employers added just 38,000 jobs in August — below expectations. Markets are also watching for further developments between the US and Iran, along with signals from the Bank of Japan on the timing of its next rate move. A Reuters poll of equity strategists shows most global indexes are still expected to post gains by the end of 2026, though a majority of analysts see a correction as likely given elevated AI-sector valuations. Note: Figures reflect the most recently confirmed closing/trading levels available at time of publication and are subject to change as markets move intraday. Sources: CNBC — cnbc.com  |  Yahoo Finance — finance.yahoo.com  |  Business Standard — business-standard.com  |  TradingView — tradingview.com  |  The Motley Fool — fool.com  |  Charles Schwab — schwab.com  |  Reuters via MarketScreener © 2026 MarketWire. For informational purposes only — not investment advice.