Dow rises, Nasdaq slips as oil prices and Treasury yields climb

US stocks opened mixed on Wednesday, September 2, as investors weighed escalating tensions between the US and Iran, rising oil prices and higher Treasury yields, while fresh employment data offered an early read on the health of the labour market.

The Dow Jones Industrial Average rose 0.4%, while the S&P 500 was up about 0.1%. The Nasdaq Composite slipped 0.1%, extending losses from Tuesday. Gains in healthcare stocks, including Johnson & Johnson, Merck and Amgen, helped support the Dow.

Oil prices steadied after Brent and US benchmark WTI crude briefly touched their highest levels in more than a month. Brent crude rose above $95 a barrel earlier in the session as renewed US-Iran strikes raised concerns that the conflict could escalate further.

The latest surge in oil prices has added to concerns over inflation, putting further pressure on bond markets. The 10-year Treasury yield held around 4.79%, while the 30-year yield stood at 5.27%, keeping investors cautious about the impact of higher borrowing costs on equities.

US stock futures mixed as oil rises, 10-year yield hits 2023 high

US stock futures were mixed on Wednesday, September 2, as Treasury yields climbed to their highest levels in nearly three years, while rising oil prices stoked concerns over inflation and weighed on investor sentiment.

Futures tied to the S&P 500 were little changed, while Nasdaq-100 futures slipped 0.2%. Dow Jones Industrial Average futures gained 137 points, or 0.3%.

The benchmark 10-year US Treasury yield climbed to 4.814%, its highest level since November 2023. Bond yields also moved higher across the UK, Germany and France, while Japan’s 10-year government bond yield traded near multi-decade highs.

The rise in yields came as investors assessed the potential inflationary impact of higher oil prices. West Texas Intermediate crude traded above $90 a barrel on Wednesday, reaching its highest level since late July, after the US launched additional military strikes on Iran, raising concerns that the conflict could escalate further.

Meanwhile, data from ADP showed US private-sector employers added jobs at a slower-than-expected pace in August. Companies added 38,000 jobs, down from an upwardly revised 46,000 in July and below the Dow Jones estimate of 47,000. Hiring gains were concentrated largely in healthcare and a handful of other industries.

Uber shares rise after job cuts announcement

Uber shares gained more than 1.5% in premarket trading after the ride-hailing company announced plans to cut about 3,300 jobs

, or roughly 10% of its workforce, as part of a restructuring aimed at reducing management layers.

The company said it expects to cut its number of managers by 20% and increase the number of employees working from offices. Going forward, only about 1% of Uber employees will be allowed to work remotely.

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