Market Report, 2026-09-01

U.S. stocks finished lower Tuesday as renewed U.S.-Iran hostilities pushed oil sharply higher reinforcing concerns that persistent inflation could keep Federal Reserve policy restrictive.

The Dow fell 419 points to 52,767, the NASDAQ Composite declined 1.03% to 26,100, and the S&P 500 lost 0.71% to 7,631, marking a third consecutive session of declines.

Rising energy costs were central to the session. Brent crude settled near $94.65 per barrel after new U.S. strikes on Iranian targets heightened concern about supply through the Strait of Hormuz. Energy stocks gained 1.27%, while defensive sectors also advanced. AI and AI adjacent sectors feel the most, on the other hand.

Treasury yields moved higher across the curve. The 5-year yield rose 5 basis points to 4.56%, while the 10-year increased 4 basis points to 4.80%. Gold also fell about 2.4% to below the 4,400 mark despite geopolitical tensions, as higher yields increased the opportunity cost of holding the metal.

Economic data provided only limited relief. Manufacturing remained in expansion but underlying details pointed to softer demand alongside persistent price pressures. Job openings were broadly in line with expectations, leaving investors focused primarily on inflation and interest-rate risks.

Attention now shifts to Wednesday’s private-employment report and Federal Reserve Beige Book, followed by services-sector data on Thursday and Friday’s employment report. With markets increasingly sensitive to evidence about inflation, labor conditions and the Fed’s next move, Adams Wealth Advisors will continue monitoring these developments and keep you informed.