US Stock Market: Why Dow Jones, Nasdaq, S&P 500 Crashed? Futures Trade Volatile On Sept-2, Check Outlook

The US stock futures traded broadly volatile on September 2, 2026, after indices Dow Jones, Nasdaq and S&P 500 crashed sharply by 1% each overnight due to rising bond yields and elevated oil prices. Seven out of 11 S&P 500 sectors started the September month on a bearish note, with consumer discretionary, industrials and materials emerging as top underperformers. Meanwhile, decline in tech stocks toppled both Nasdaq and Dow Jones. Going ahead, investors focus is shifted towards the upcoming ADP private payrolls data and the Fed's Beige Book, while quarterly earnings of major companies like Broadcom, Hewlett Packard and Snowflake, among others will also add to the market mood.

US Stock Futures

The Dow Jones futures traded at 52,831, up by 3 points on September 2, 2026, at the time of writing. While the Nasdaq 100 futures slipped by 58.75 points or 0.20% to trade around 29,056.25 and S&P 500 futures dropped marginally to trade around 7,636.00.

US stock futures stabilized on Wednesday after the major averages posted another losing session, pressured by rising bond yields and oil prices that heightened concerns over inflation and interest rate hikes. In regular trading on Tuesday, the Dow fell 0.79%, the S&P 500 declined 0.71% and the Nasdaq Composite dropped 1.03%, with all three benchmarks extending their losing streak to a third session, as per Trading Economics.

Dow Jones + Nasdaq Composite + S&P 500

Overnight, the Dow Jones Industrial Average or DJIA index crashed sharply by 419.02 points or 0.8% to close at 52,766.88. Meanwhile, the Nasdaq Composite sank by 271.12 points or 1.03% to trade around 26,099.77. Further, the S&P 500 index plunged by 54.67 points or 0.71% to finish at 7,631.47.

"September began with a thud. Global bond yields soared, crude surged, and stocks dove early as investors anticipated central bank rate hikes and monitored headlines of overnight attacks on a cargo ship navigating the Strait of Hormuz. Tech took the brunt of the blow, especially chip stocks," said Joe Mazzola, Head Trading & Derivatives Strategist at Charles Schwab.

Among stocks, Nvidia dropped 1.4%, Amazon slipped 1.9%, Tesla tumbled 3.22%, Microsoft declined 1.24%, Samsung plummeted 3.54%, Alphabet sank over 1%, Micron Technology plunged 2.64%, while Oracle and Dell crashed 5.23% and 6.80% overnight.

Mazzola highlighted that one headwind is Treasury yields, now a stone's throw from 5% for the 10-year note and possibly getting there before 2027. The 30-year Treasury yield has spent 55 days above 5% so far this year, the most in any year since 2006.

Meanwhile, the chances of a rate hike at the Fed's September meeting reached 66%, according to the CME FedWatch Tool, up from 40% a week ago.

The 10-year US treasury yield climbed further to 4.8% in the early hours of Wednesday, which is highest level since October 2023. Further, the 30-year treasury yield also rose to 5.28%. Additionally, crude oil prices extended their rally. At present, US WTI crude and Brent crude rose by nearly 1% each to trade near $91 per barrel and $96 per barrel.

US Stock Market Outlook On Wednesday, September 2, 2026:

Economic data such as ADP Employment Change, Business Inventories, EIA Crude Oil Inventories, Factory Orders, and MBA Mortgage Applications Index are scheduled on Wednesday.

Among earnings, watch out for Aerovironment Inc. (AVAV), Argan Inc. (AGX), Broadcom Inc. (AVGO), Brown-Forman Corp. (BF/B), Five Below Inc. (FIVE), Forgent Power Solutions Inc. (FPS), Fuelcell Energy Inc. (FCEL), G-III Apparel Group (GIII), Hewlett Packard Enterprise Company (HPE), NetApp Inc. (NTAP), PVH Corp. (PVH), and Snowflake Inc. (SNOW).

According to Schwab's note, the jobs data parade starts with July Job Openings and Labor Turnover Survey (JOLTS), which analysts expect to show 7.3 million job openings. Such a number, down just slightly from June's 7.36 million, probably wouldn't mean much for the market.

Instead, Schwab's note said, traders might focus on the quits rate, which provides clues about how many workers are jumping to new jobs, possibly for better pay. A higher quit rate than July's 2% might send a positive signal about the job market ahead of Friday's August nonfarm payrolls report, the crucial reading this week. Quits are near their lowest levels in six years.

Looking ahead to payrolls data Friday, analysts expect around 45,000 to 55,000 new jobs created in August, up from a decline of 23,000 in July, as per Schwab.

"The nonfarm payrolls reports have been weak recently, and if Friday's report is soft, this could ease rate hike concerns and translate into a bullish move for stocks," said Nathan Peterson, director of derivatives analysis at the Schwab Center for Financial Research (SCFR).

For global markets, Hariselvan Radhakrishnan, Founder & CEO of HST Wealth said, the two clearest potential relief valves this week are a de-escalation in the Middle East that brings crude materially lower, or softer U.S. labour-market data that reduces expectations of monetary tightening. Until either emerges, pressure on risk assets is likely to remain elevated.

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.