U.S. stock futures saw declines in early European trading on September 1, 2026, driven by a global bond selloff. This selloff pushed global bond yields to multiyear highs, fueled by growing investor certainty that the U.S. Federal Reserve will raise interest rates at its upcoming policy meeting. The conviction was reinforced by hawkish comments from Fed Chairman Kevin Warsh at the recent Jackson Hole speech, leading markets to price in a 67.5% probability of a 25 basis-point rate hike in September. Additionally, a new wave of attacks between the U.S. and Iran exacerbated inflation concerns.
Sovereign bonds were sold off worldwide, with 10-year Japanese government bond yields hitting levels not seen since 1996 and 30-year U.K. gilt yields reaching their highest since 1998. In the U.S., 10-year Treasury yields rose 3.3 basis points to 4.789%, marking their highest level since January 2025. The dollar strengthened on the prospect of higher rates, while Bitcoin fell to around $78,540 and gold slipped below $4,500 per troy ounce, as higher rate expectations made the non-yielding asset less attractive.
Brent crude futures rose by over 1.5% to nearly $92 a barrel due to the renewed U.S.-Iran escalations. U.S. stock futures edged lower across the board, with Nasdaq futures falling 0.6%, and Dow Jones Industrial Average and S&P 500 futures both slipping around 0.3% in early European trade. Chip stocks also weakened in premarket activity. Asian and European blue-chip equity indexes largely declined. Investors are also watching the G20 summit in Asheville, North Carolina, for market-moving speeches and developments on inflation and borrowing costs, with Palo Alto Networks and Dell scheduled to report earnings in the U.S.
