Stocks Get Hit As Global Bond Selloff Lifts Dollar: Markets Wrap

Wall Street kicked off September trading on a sour note, with stocks joining a slide in global bonds as budget concerns in developed-world countries resurfaced. The dollar rose. Gold hit a record high.

A traditionally weak season for equities started at a time when anxiety had already been brewing about lofty valuations, particularly in the high-profile group of big techs. The S&P 500 and the Nasdaq 100 lost 1.2% and 1.4%, respectively, on Monday.

Things weren’t that much easier in the bond market, where 30-year Treasury yields approached 5%. The rate on long-dated UK bonds rose to the highest since 1998 amid concerns about the fiscal outlook. A slew of US corporate-debt sales also weighed on trading.

“Well, it looks like the month of September is going to get off to a rocky start, so all of us who have been worrying about the upcoming seasonally rough time for the stock market are looking prescient,” said Matt Maley at Miller Tabak. “The biggest culprit for this morning’s weakness in the stock futures is the rise in global long-term interest rates.”

Focus this week is on key labor market data for clues on economic growth and the Federal Reserve’s policy outlook. Swap markets are currently pricing in high odds of a rate reduction later this month.

• The US has revoked Taiwan Semiconductor Manufacturing Co.’s authorization to freely ship essential gear to its main Chinese chipmaking base, potentially curtailing its production capabilities at that older-generation facility.

• Deliveries from Tesla Inc.’s Shanghai factory extended their slump in August as new products launched by Chinese rivals win over customers and global trade uncertainties persist.

  • Tesla Inc.’s long-awaited entry into India has delivered underwhelming results so far, with tepid bookings fueling fresh doubts about the company’s global growth outlook.

• Kraft Heinz Co. said it plans to split into two separate companies, undoing a mega-deal ushered in a decade ago that turned the maker of Kraft Mac & Cheese into one of the largest packaged food sellers in the world.

• Air Lease Corp., the aviation finance firm built by industry pioneer Steven Udvar-Házy, agreed to a $7.4 billion sale to a group led by Sumitomo Corp., adding to consolidation in an industry that plays an increasingly important role in aircraft purchases.

• Klarna Group Plc and some of its shareholders are seeking to raise as much as $1.27 billion as the financial-technology company revives a New York initial public offering that was delayed earlier this year amid market volatility.

• Activist investor Elliott Investment Management has built a stake of about $4 billion in PepsiCo Inc. with plans to call for changes at the struggling beverage maker.

• Signet Jewelers Ltd., the owner of the Zales and Jared chains, raised its full-year sales guidance as consumers continued to spend on jewelry despite signs of a slowdown for other discretionary goods.

• Constellation Brands Inc. cut its fiscal 2026 guidance, citing weak consumer demand, which will hurt inventory rebalancing at the distributor level.

• Apollo Global Management Inc. is poised to launch a $5 billion strategy to invest in sports deals, marking another major asset manager targeting the booming sector.

• Lam Research Corp. sank after Morgan Stanley downgraded the semiconductor capital equipment company to underweight from equal weight.

• Frontier Group Holdings Inc. jumped after Deutsche Bank raised the recommendation on low-cost carrier to buy from hold saying the firm is best-positioned to benefit from rival Spirit’s bankruptcy.

• Elf Beauty Inc. slid after Deutsche Bank downgraded the cosmetics company to hold from buy.

• Nestlé SA is turning to the executive who runs its Nespresso coffee empire to try and steady the world’s largest food business after it was rocked by the second CEO firing in a little over a year.

Some of the main moves in markets:

• The S&P 500 fell 1.2% as of 9:45 a.m. New York time

• The Nasdaq 100 fell 1.4%

• The Dow Jones Industrial Average fell 1.2%

• The Stoxx Europe 600 fell 1.2%

• The MSCI World Index fell 1.2%

• Bloomberg Magnificent 7 Total Return Index fell 1.5%

• The Russell 2000 Index fell 1.1%

• The Bloomberg Dollar Spot Index rose 0.6%

• The euro fell 0.6% to $1.1646

• The British pound fell 1.2% to $1.3389

• The Japanese yen fell 0.8% to 148.39 per dollar

• Bitcoin rose 1.5% to $110,495.11

• Ether rose 1.3% to $4,343.47

• The yield on 10-year Treasuries advanced four basis points to 4.27%

• Germany’s 10-year yield advanced four basis points to 2.79%

• Britain’s 10-year yield advanced four basis points to 4.79%

• The yield on 2-year Treasuries advanced three basis points to 3.65%

• The yield on 30-year Treasuries advanced three basis points to 4.96%

• West Texas Intermediate crude rose 1.3% to $64.83 a barrel

• Spot gold rose 0.4% to $3,490.08 an ounce