Federal Reserve Chair Kevin Warsh’s Jackson Hole address pushed U.S. Treasury yields to their highest levels since January 2025, lifting rate-hike expectations and adding pressure to bond, currency, and equity markets worldwide.
The S&P 500, Dow, Nasdaq and Russell 2000 all closed lower on September 1, 2026, as a worldwide bond sell-off pushed long-dated yields to multi-decade highs and U.S.-Iran tensions lifted crude prices.
Oil prices in the mid-$80s and renewed Middle East tensions drove a global retreat from risk assets on September 1, 2026, lifting Treasury yields to 4.756% and raising Federal Reserve tightening odds to 62%.
U.S. stocks fell sharply on September 1, 2026, as bond yields surged globally and Middle East tensions escalated. The Dow dropped 419 points while oil prices climbed to $90 per barrel.
