Nasdaq futures fall 1.17% as Japan's 10-year hits 3% and Hormuz strikes lift crude

Sentiment: bearish S&P 500 futures: -0.61%

S&P 500 futures traded at 7,652 at 8:40am ET on 1 September 2026, down 0.61%, with Nasdaq 100 futures at 29,166.25 and down 1.17% as a global government bond selloff lifted the discount rate applied to long-duration technology. NVS.US led the pre-market at +6.07% after its oral drug remibrutinib met the primary endpoints of two late-stage multiple sclerosis studies and beat a Sanofi comparator on relapse reduction. Unidentified projectiles struck two crude tankers leaving the Persian Gulf on Monday evening, lifting WTI 2.44% to $87.85 and putting energy at the top of the pre-market sector table at XLE.US +1.26%.

Overnight drivers

• US 10-year at 4.79%: up 3 basis points to a 20-month high, with Japan's 10-year at 3.00% for the first time since 1996 and UK 10-year gilts up 9 basis points to 5.2341%, the highest since June 2008. The repricing reached the longest-duration equity first, SOXX.US -1.97% against SPY.US -0.63%.
• WTI at $87.85: up 2.44% after unidentified projectiles struck two crude tankers on Monday evening as they left the Persian Gulf, one Saudi-flagged and one South Korean-owned. XLE.US +1.26% and XOP.US +1.36% led the sector groups.
• Gold at $4,415.50: down 1.47% with silver 2.19% lower, taking GDX.US to -3.14%, a steeper fall than semiconductors at SOXX.US -1.97%.
• VIX at 15.85: up 6.23% after closing 3.40% higher on Monday, while the dollar added 0.19% to 99.61 on DXY.

The global bond move

Government bond yields rose across four major markets on 1 September 2026, with Japan's 10-year note reaching 3.00% for the first time since 1996 after rising more than 6 basis points. Japan's 2-year touched a 31-year high of 1.81%.

UK 10-year gilts rose 9 basis points to 5.2341%, the highest since June 2008, and the 30-year gilt rose 9 basis points to 5.8856%, the highest since March 1998, with UK yields catching up after a Monday public holiday. Germany's 10-year bund added more than 3 basis points to 3.3546%, a 52-week high, while the 2-year bund reached 2.9496%, its highest since July 2024.

Treasury Secretary Scott Bessent told CNBC on Monday that the US bond market remains the best performing market in the world, citing Fitch's reaffirmation of its AA+ rating last month. Steve Englander of Standard Chartered told CNBC on Tuesday that a Supreme Court tariff ruling removed roughly 40% of additional tariff revenue, and that being the best performing bond market is not the same as performing well.

Overnight Asia and Europe

Japan's Nikkei 225 closed at 66,215.34 on 1 September 2026, down 0.15%, while South Korea's KOSPI finished 0.23% higher at 6,835.80.

• Nikkei 225: 66,215.34 (-0.15%)
• Hang Seng: 25,329.73 (-0.93%)
• KOSPI: 6,835.80 (+0.23%)

European cash indexes were lower at 8:22am ET, with the DAX at 26,015.38 (-0.92%), the FTSE 100 at 10,760.85 (-0.59%) and the Euro STOXX 50 at 6,387.88 (-0.50%). European technology stocks fell furthest as borrowing costs climbed, and mining names tracked bullion lower.

Pre-market movers

NVS.US traded 6.07% higher at $161.29 at 8:37am ET on 1 September 2026, the largest gain across the 250-name US sweep.

• NVS.US +6.07%: remibrutinib met the primary endpoints of two late-stage multiple sclerosis studies and beat Sanofi's comparator on relapse reduction. XLV.US +0.66% was the second firmest sector group.
• UBS.US -3.86%: a Swiss parliamentary committee ruled late Monday on how much capital must back the bank's foreign subsidiaries, with an upper house debate due in September and the final rules unsettled until late 2026 at the earliest.
• MRVL.US -3.66% and NOW.US -3.40% led the semiconductor and software declines, with INTC.US -3.12%, SNDK.US -3.01%, SAP.US -2.79%, INTU.US -2.76% and ARM.US -2.46% all lower.
• WPM.US -3.14%, B.US -3.06% and AEM.US -3.03% followed gold's 1.47% fall, while FCX.US -3.05% tracked copper 1.15% lower.
• AMZN.US -1.72%, TSLA.US -1.66% and META.US -1.60% fell hardest among the seven largest US technology names. AAPL.US +0.05% was the only one higher.
• EOG.US +2.15%, COP.US +1.66%, XOM.US +1.53% and CVX.US +1.38% rose with crude.

US economic calendar today (ET)

• 9:45am: S&P Global US manufacturing PMI, final August reading
• 10:00am: ISM manufacturing PMI, consensus 53.2 after 53.2 in July
• 10:00am: JOLTS job openings for July
• 10:00am: Construction spending, consensus 0.0% after -0.1%

What to watch

• 10:00am ISM prices paid is the first monthly reading on whether crude's 2.44% overnight move has reached manufacturing input costs.
• 4.79% on the US 10-year sits at a 20-month high, and the August employment report lands on Friday 4 September with consensus at 45,000 after a 23,000 decline in July.
• The FOMC meets 15 to 16 September, with the decision at 2:00pm ET on 16 September alongside the Summary of Economic Projections.

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