US Stock Market: Dow Jones, Nasdaq, S&P 500 Fall 1% Overnight; Futures Decline Tuesday, Wall Street Outlook

The US stock futures declined in the early hours of Tuesday, tracking a nearly 1% drop in the Dow Jones, Nasdaq Composite, and S&P 500 indexes overnight. Investors' sentiment turned bearish due to rising treasury yields and crude oil prices after Iran and the US negotiations hit a dead end. Investors will focus on key data such as consumer confidence, job openings, and the labor turnover report scheduled on September 29, 2026, while the earnings season makes a comeback.

US Stock Futures Today, September 29, 2026

The Dow Jones futures dropped by 54 points or 0.10% to trade around 51,783 in the early hours of Tuesday. Also, the Nasdaq 100 futures plunged by 48.25 points or 0.16% to trade around 30,518, while the S&P 500 futures dipped by 10.25 points or 0.13% to trade around 7,736.75.

US stock futures edged lower on Tuesday after the major averages declined in the previous session, pressured by a rise in Treasury yields. Investors also remained focused on geopolitical developments amid continued uncertainty surrounding US-Iran negotiations, although Saudi Arabia managed to restore oil flows through a key pipeline, as per Trading Economics.

Dow Jones + S&P 500 + Nasdaq Composite

Overnight, the Dow Jones index plunged by 347.11 points or 0.7% to end at 51,481.51, while the S&P 500 index declined by 59.72 points or 0.77% to end at 7,683.69. Furthermore, the tech-heavy index, Nasdaq Composite, dropped by 248.34 points or 0.92% to close at 26,820.38.

Investors face a full slate of inflation and labor data this week along with results from Micron (MU) and Nike (NKE). Stocks slid, hit by rising oil and yields after the U.S. rejected Iran's terms to reopen the strait, though talks are expected to resume. Several Federal Reserve speakers pepper today's calendar following recent hawkish views from many, as per Charles Schwab report.

US Stock Market Tuesday Outlook; Key Factors Here

On September 29, in the early trade, crude oil prices continued to trade higher. US WTI crude is up 1% to trade near $94 per barrel and Brent crude is higher by 1.3% to trade near $107 per barrel. Meanwhile, the US 10-year Treasury yield moved above 5.2%, highest since mid-2007, while the 30-year yield was at 5.55%, highest since 2004.

Also, US dollar strengthened to trade around 101.2, hitting two-months high as US Fed is expected to hike rates for the second time ahead. The probability of rate hike has hit 70% in October policy.

Meanwhile, Schwab's note said, though earnings make a showing, coming days are all about jobs, peaking Friday with September nonfarm payrolls. Early consensus for payrolls, which also could influence Fed policy, is for a decent showing near 85,000, below August's level but above the three-month average. The data follows last week's yield rocket ride partly reflecting firm U.S. economic growth. If jobs data is hot, it could exacerbate that trend. Though the broader market rose last week, index strength masked softness below as two stocks fell for each that gained.

"Yields hit fresh cycle-highs Friday, but perhaps Wall Street is hoping that the velocity of the rate rise will slow or potentially even reverse if progress is made in the Middle East," said Nathan Peterson, director of derivatives research and strategy at the Schwab Center for Financial Research (SCFR).

On Tuesday, focus will be on economic reports like Consumer Confidence, FHFA Housing Price Index, JOLTs- Job Openings, and S&P Case-Shiller Home-Price Index. While companies like AAR Corp. (AIR), Carmax Inc. (KMX) and Carnival Corporation Ltd. (CCL) are scheduled to declare their earnings.

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