US and Canadian Stocks Fall as Oil Prices Surge

U.S. and Canadian stock indexes declined on September 1, 2026, as rising bond yields and surging oil prices dampened investor sentiment. The S&P 500 fell 0.4%, the Nasdaq Composite dropped between 0.5% and 0.7%, and the Dow Jones Industrial Average fell between 164 and 190 points. Canada's S&P/TSX Composite Index also traded near four-week lows.

Market volatility is driven by a conflict between the Federal government of the United States and Iran, which has effectively shut down the Strait of Hormuz. This closure pushed Brent crude oil prices to approximately $92.33 per barrel. While energy stocks rose, technology firms including Microsoft, Nvidia, and Advanced Micro Devices faced significant losses due to their reliance on borrowing.

Financial pressure is compounded by U.S. national debt surpassing $40 trillion, pushing 10-year Treasury yields to 4.77%. With inflation remaining above 3%, investors anticipate a 66% chance that the Federal Reserve System will raise interest rates at its upcoming September meeting to reach a 2% target. Federal Reserve Chair Kevin Warsh previously delivered a hawkish message at Jackson Hole, stating that taming inflation is the central bank's chief focus.

Investors are now awaiting U.S. nonfarm payrolls data, inflation readings, and a monetary policy decision from the Bank of Canada expected Wednesday.