Dow Jones + Nasdaq + S&P 500

The US stock market will begin their first trading session for the month of September on Tuesday. All indices ended August on green pastures; however, the Nasdaq Composite outperformed with nearly 2% gains. While the Dow Jones ended in the green, it underperformed sharply in comparison to its counterparts, the Nasdaq and the S&P 500 index. Notably, the upcoming US jobs report will shape the investors’ mood on Wall Street this week. However, experts also point out that overall and historically, September is one of the worst months for the S&P 500.

US Stock Futures

In the early hours of September 1, 2026, US stock futures are broadly steady despite Wall Street starting the week on a sour note. Sentiments will be triggered by the rising oil prices and renewed tensions between US and Iran.

At the time of writing, the Dow Jones futures traded at 53,259 which is marginally up by 19 points. While the Nasdaq 100 futures gained mildly by 13.25 points or 29,526.25. However, the S&P 500 futures traded broadly flat at 7,698.50.

“Global cues remain mixed as Asian markets traded cautiously, while U.S. markets ended lower on Monday. Wall Street came under pressure as a war-related rise in crude oil prices revived inflation concerns and increased expectations of tighter monetary policy. The weakness in global equities and elevated crude prices may keep sentiment cautious during the opening session,” said Sachin Gupta, VP – Technical Research at Choice Equity Broking.

Amidst this, oil prices traded higher. US WTI and Brent crude are up by 1% each t trade near $87 per barrel and $91.4 per barrel.

“Crude oil remains a key monitorable for domestic markets, with WTI trading in the $86-87 per barrel range as geopolitical tensions in the Middle East keep concerns over energy supplies elevated,” said Ponmudi R, CEO of Enrich Money.

Furthermore, the 10-year US treasury yield reached its highest level since January 2025 to 4.78% on Tuesday. While the 30-year yield climbed to 5.27%. Additionally, the US dollar continued to be firm around 99.5, which has been the case since US Federal Reserve’s chair Kevin Warsh gave hawkish remarks in Jackson hole meeting.

Warsh stated that FOMC will “have work to do” if policymakers lack sufficient confidence that consumer price index (CPI) inflation is moving towards their target of 2%. This hinted at potential rate hike scenario to curb persistent price pressures.

The probability of rate hike in September 2026 has reached to 65%, almost double from around 36% before his remarks.

Dow Jones + Nasdaq + S&P 500

On August 31st, which was the last trading session of August month, the Dow Jones Industrial Average or DJIA index plunged by 374.09 points or 0.70% to close at 53,185.90. However, the Nasdaq Composite slipped marginally by 31.54 points or 0.12% to end at 26,370.89 overnight. Also, the S&P 500 index dipped by 25.62 points or 0.33% to end at 7,686.14.

Nonetheless, all three indices closed overall August month in green. The outperformer is Nasdaq for August 2026 with 456.99 points or 1.8% gains, followed by S&P 500 which surged by 85.64 points or 1.13% in the month. However, the DJIA index underperformed with a meagre 7.49 points or 0.01% gains.

Wall Street is now entering what has historically been a challenging month for stocks after posting modest gains in August. Investors will also turn their attention to the latest manufacturing and services activity data on Tuesday, as well as the August jobs report on Friday amid a busy economic calendar, as per Trading Economics.

September 2026 Outlook For Wall Street

“I don’t believe investors are too concerned about a rate hike in September (should that occur) but perhaps may be more sensitive to any ripples it could generate in the global bond market,” said Nathan Peterson, Director of Derivatives Research and Strategy for the Schwab Center for Financial Research.

He also said, stocks are also entering the month of September, which is historically the worst performing month for the S&P 500 index.

“If we have one takeaway over the past couple months, it’s that the bond market is indeed final boss,” said Kevin Gordon, head of macro research and strategy at the Schwab Center for Financial Research (SCFR).

Gordon further explained that climbing yields can raise borrowing costs for companies and consumers, slowing economic and earnings growth. They also can steer investors into bonds, hoping for solid income at perceived lower risk.

Furthermore, the strategist said, hike odds could change between now and the Fed’s mid-September meeting as market participants watch August jobs and inflation data over the next two weeks. Friday’s payrolls report is expected to show jobs growth of around 45,000, according to consensus from Wall Street analysts. That compares with a surprise drop of 23,000 in July.

Should Investors Buy US Stocks This Week?

According to Shlok Srivastav, Co-founder and COO, Appreciate, the AI borrowing is being raised in a bond market where the 30-year Treasury yield touched 5.31% in August, its highest since 2007. That level reflects government deficits and inflation that has held above target for five years, with headline PCE at 3.7% for July against expectations of 3.6% and three regional Fed presidents dissenting in favor of higher rates at the July meeting.

He added, so the cost of funding the buildout is set by conditions the buildout does not control, and policy has little room to bring it down soon. Earnings have been carrying this market while government bond yields keep rising, and higher yields lower what a company’s future profits are worth today.

Hence, he said, for Indian investors that concentration is the useful finding, because the reason to hold US equities is exposure to Indian markets cannot supply: semiconductors, AI infrastructure, and global software. Those businesses just posted the strongest results of the week. The US market remains where these companies are listed. The work has moved from getting there to choosing within it.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as “we”). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.