S&P 500 falls 0.71% to 7,631.47 as the 10-year hits 4.80% and Hormuz strikes lift crude 5.74%

S&P 500 close: 7,631.47 (-0.71%) Sector breadth: 4 of 11 sectors higher Sentiment: bearish

The S&P 500 closed at 7,631.47 on 1 September 2026, down 0.71%, as the US 10-year Treasury yield rose for a fifth straight session to 4.80%, and investors marked down the highest-multiple software names. ORCL.US fell 5.23% to $141.32 after the same bond selloff raised the cost of the debt funding its data-centre build. Two tankers hit by projectiles in the Strait of Hormuz overnight sent WTI crude up 5.74% to $90.68 and Brent up 5.23% to $95.22, and markets moved to price a September Federal Reserve hike near 68%.

What moved the index

Four sector groups account for the 71 basis point fall in the S&P 500 on 1 September 2026.

• Technology: the sector fell 1.53%, roughly 30% of the index, worth about 46 bps of the decline. At a 4.80% 10-year, investors cut the longest-duration earnings first: ORCL.US -5.23%, CDNS.US -7.60%, CRWD.US -6.90%, NOW.US -3.44%. Software measured by IGV.US fell 3.46% against SPY.US at -0.69%.
• Consumer discretionary: down 1.72%, roughly 10% of the index, worth about 17 bps. Crude at $90.68 lifts fuel and freight costs across the sector: TSLA.US -3.22%, HD.US -2.46%, AMZN.US -1.87%.
• Industrials and financials: down 1.37% and 0.88%, together roughly 21% of the index, worth about 22 bps. IBKR.US fell 7.01%, the widest fall among the large brokers, with CAT.US -2.30% and GS.US -1.80%.
• Energy, health care, utilities and staples: up 1.27%, 0.66%, 0.78% and 0.32%, together roughly 20% of the index, worth about 14 bps of offset. XOM.US +2.24%, CVX.US +2.38%, COP.US +2.79% and JNJ.US +2.01%.

Those four groups net to about 71 bps, matching the index move. Sector weights here are approximate and the sector ETFs do not map one-for-one onto index constituents.

Session highlights

• ORCL.US -5.23% to $141.32. Free cash flow ran at negative $23.7 billion last year, funded by $43 billion of debt raised in the same period with another $20 billion planned this year, so a move in yields lands directly on the funding cost.
• IGV.US -3.46% against QQQ.US -1.27% and SPY.US -0.69%. DELL.US -6.80%, NET.US -6.42%, DDOG.US -5.57%, ZS.US -5.32% and PANW.US -5.24% all fell more than three times the index.
• 4.80% on the US 10-year is the highest since January 2025 and a fifth consecutive daily rise. The 5-year rose to 4.56% and the 30-year to 5.27%.
• AAPL.US +2.61% to $325.13 was the exception among the largest technology listings, against MSFT.US -1.24%, NVDA.US -1.39%, AMZN.US -1.87% and TSLA.US -3.22%.
• VIX closed at 16.34, up 9.52%, and the Russell 2000 fell 1.23% to 2,920.13, a wider decline than the S&P 500.

Sector scorecard

Energy led all eleven S&P 500 sectors on 1 September 2026 at +1.27%, and consumer discretionary lagged at -1.72%, measured on the SPDR sector funds.

• Best: energy +1.27%
• Worst: consumer discretionary -1.72%
• Dispersion (best minus worst): 2.99 points
• 4 of 11 sectors closed higher: energy +1.27%, utilities +0.78%, health care +0.66%, staples +0.32%. Technology -1.53% and industrials -1.37% led the seven decliners.

Top movers

After-hours earnings

Five US listings reported after the 1 September close, and the reaction split along the same duration line as the regular session.

• DELL.US reported adjusted EPS of $7.04 against $4.87 expected on revenue of $47 billion, guided fiscal 2027 to $192 billion of revenue and $25.50 EPS, and traded about 10% higher after the bell. It had closed the regular session down 6.80%.
• GTLB.US posted adjusted EPS of $0.24 against $0.18 expected on revenue of $286.3 million, guided the full year to $1.13 billion, and traded about 14% higher.
• PANW.US delivered EPS of $1.02 on revenue of $3.41 billion with fiscal 2027 revenue guidance of $14.1 billion to $14.2 billion, and traded about 3% higher after closing the session down 5.24%.
• MDB.US beat on adjusted EPS at $1.90 and revenue at $771.8 million and raised full-year guidance to $2.99 billion to $3.03 billion, yet traded about 13% lower.
• CRDO.US reported EPS of $1.20 on revenue of $479 million with second-quarter guidance of $525 million to $535 million, and traded about 6% lower after closing down 8.65%.
• HPE.US rose about 6% and SMCI.US about 2.4% on the Dell print without reporting.

Notable announcements

• CRK.US agreed to sell non-operated working interests in its Legacy and Western Haynesville assets plus 15% of Pinnacle Gas Services to SOCAR for $1.65 billion in cash, and will apply the proceeds to cut net debt from $3.1 billion to $1.5 billion.
• FRVO.US signed a supply agreement with Google for close to 400 megawatts of geothermal power from Cape Station in Utah, deliveries from 2028, with expansion to about 600MW by mid-2030.
• ALMS.US reported that its 408-patient Phase 2b LUMUS trial of envudeucitinib in systemic lupus missed both primary and secondary endpoints at week 48, while a prespecified high interferon gene signature subgroup responded.
• EIX.US +8.93% and PCG.US +5.95% recovered part of Monday's fall, when California's wildfire bill advanced without the liability cap the utilities had expected.

Next session catalysts (ET)

• Wed 2 Sep 08:15 ADP employment change for August
• Wed 2 Sep 14:00 Federal Reserve Beige Book
• Wed 2 Sep, after the close AVGO.US third-quarter results
• Thu 3 Sep August Challenger job cuts and the ISM services index; ZS.US reports after the close
• Fri 4 Sep 08:30 August non-farm payrolls, the last labour print before the mid-September FOMC meeting

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