Nasdaq Opens Flat at 26,111 as US-Iran Strikes Drive Oil Above $95 and Bond Yields Hit 4.81%; Dow Gains 0.56% at the Bell

Authored By HDFC SKY | Last Modified: Sep 2, 2026 08:37 PM IST

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Mumbai, Sept 2: US stock markets delivered a mixed performance at Wednesday’s opening bell, with the technology-heavy Nasdaq Composite (^IXIC) commencing the session virtually unchanged at 26,111.14, adding a marginal 11.37 points (+0.04%) in early trading. The modest gains came amid escalating military tensions between the United States and Iran, which pushed Brent crude oil prices above $95 per barrel and drove 10-year Treasury yields to their highest levels since November 2023 at 4.81%, reigniting inflation concerns across global financial markets as trading began.

The Dow Jones Industrial Average (^DJI) demonstrated relative strength at the open, climbing 293.74 points (+0.56%) to 53,060.62, while the S&P 500 (^GSPC) advanced 19.56 points (+0.26%) to settle at 7,651.03 in the first hour of trading. The Russell 2000 Index (^RUT) outperformed broader benchmarks, gaining 21.19 points (+0.73%) to 2,941.32, as investors sought exposure to domestically-focused small-cap companies amid geopolitical uncertainty. Trading volumes remained elevated, with the Nasdaq recording 1.01 billion shares exchanged within the opening minutes.

Oil Prices Surge Past $95 as US Launches Second Round of Iran Strikes

The primary catalyst driving market sentiment at the opening bell was the renewed military confrontation between the US and Iran, which entered its fourth consecutive day of direct conflict. The US military launched a second round of airstrikes targeting Iranian air defence sites, radar systems, maritime assets, and communications facilities, according to US Central Command. The strikes were executed in retaliation for attempts by Iran’s Revolutionary Guard Corps to threaten shipping through the Strait of Hormuz, a critical chokepoint through which approximately 20% of global oil and liquefied natural gas transit.

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Iran responded by announcing a “decisive operation” against US military sites in Jordan and Bahrain, per the state-affiliated Tasnim news agency. The escalating conflict pushed Brent crude futures (BZ=F) to $97.04 per barrel during early trading before settling at $94.23, down 0.44% from the previous session. US benchmark WTI crude (CL=F) touched $92.29 per barrel at the open, reflecting heightened concerns over supply disruptions in the Middle East before steadying just below $90.

President Donald Trump issued a stern warning late Tuesday, stating he would hit Iran “much harder” if the nation retaliated further. “I couldn’t care less if they sign a worthless, to them, agreement,” the president wrote. “I like our position now much better, with almost total control of the Hormuz Strait, and their economy totally collapsing.”

10-Year Treasury Yields Hit 4.81% as Rate Hike Bets Intensify at Opening

The surge in oil prices has amplified fears of resurgent inflation, triggering a significant sell-off in global bond markets ahead of Wednesday’s trading. The benchmark US 10-year Treasury yield (^TNX) reached 4.814% during early morning trading, marking its highest level since November 2023. The 30-year Treasury yield (^TYX) climbed to 5.2878%, approaching levels last seen during the 2007-08 global financial crisis.

The yield spike has been attributed to increased expectations of a Federal Reserve rate hike at the September policy meeting. Market pricing now indicates a 68% probability of a quarter-percentage-point rate increase, up sharply from approximately 37% just one week earlier, according to Bloomberg data. The surge in borrowing costs has weighed heavily on technology stocks at the open, which are particularly sensitive to higher discount rates that reduce the present value of future earnings.

Global bond yields also rose substantially, with the UK 10-year Gilt yield reaching 5.266%, its highest level since the global financial crisis. Japan’s 10-year government bond yield remained above 3%, trading at multi-decade highs, while German 10-year Bund yields climbed to 3.3759%, near their highest levels since 1998. European gas prices reached their highest levels since the start of 2023, further contributing to inflation concerns across the continent.

ADP Private Payrolls Add Only 38,000 Jobs in August, Missing Estimates

Investors also grappled with weaker-than-expected employment data from payrolls processor ADP, released just before the opening bell, which reported that US private sector employers added just 38,000 jobs in August, falling short of economists’ consensus estimate of 47,000 positions. The figure represents the slowest pace of job creation since January and marks a decline from July’s upwardly revised 46,000 jobs added.

Education and health services led job creation with 45,000 new positions, while the construction, leisure, and hospitality sectors also demonstrated strength. However, the manufacturing sector experienced notable losses, a development that will be closely monitored for potential signals regarding the sustainability of the AI infrastructure build-out.

Wage growth for “job-stayers” remained steady at 3% year-over-year, while pay for job changers edged down to 4.7% from July’s 4.8% annual growth rate. Dr Nela Richardson, ADP’s chief economist, noted: “To understand hiring patterns, you have to look deeply into where pay growth is accelerating, where it’s slowing, and for whom. Once-predictable wage growth has been overtaken by the complexities of demographic change, persistent inflation, and AI’s effects on jobs.”

Dell Technologies Surges 5.12% on Record AI Server Orders of $60.9 Billion

Dell Technologies (DELL) emerged as one of the standout performers at the opening bell, with shares climbing 5.12% to $446.74 following the company’s fiscal second-quarter earnings report released late Tuesday. The technology giant booked a record $60.9 billion in AI server orders and exited the quarter with a record $95 billion backlog, demonstrating robust demand for artificial intelligence infrastructure.

The company reported record revenue of $47 billion, representing a 58% year-over-year increase. Earnings per share came in at $6.34, up an extraordinary 273% from the previous year, while adjusted earnings rose 203% to $7.04 per share. Jeff Clarke, CEO of Dell Technologies, stated: “With AI momentum accelerating and our opportunity expanding across the portfolio, we’re raising our full-year FY27 revenue outlook by $25 billion to $192 billion, up nearly 70% year over year.”

The strong performance also boosted Hewlett Packard Enterprise (HPE) , which gained 4.70% in sympathy, as the upbeat outlook reinforced investor confidence in AI infrastructure spending across the technology sector.

Palo Alto Networks Plunges 9.40% as Cybersecurity Stock Leads Nasdaq Decliners

Palo Alto Networks (PANW) was the worst performer on the Nasdaq 100 at the open, tumbling 9.40% amid broader weakness in cybersecurity stocks. The decline was part of a wider sell-off in the sector, with CrowdStrike (CRWD) falling 4.48% and Fortinet (FTNT) dropping 4.93%, reflecting profit-taking following strong gains in the cybersecurity space over recent months.

Datadog (DDOG) declined 3.57%, while Palantir Technologies (PLTR) fell 2.36%, extending losses from the previous session. The technology sector overall showed mixed performance, with the Nasdaq 100 (QQQ) slipping 0.1% in early trading before recovering to near-flat levels.

Among the Magnificent Seven stocks, performance was mixed. Meta Platforms (META) advanced 2.53%, while Netflix (NFLX) gained 2.74%, making them among the top performers on the index. Nvidia (NVDA) rose 1.86%, and Amazon (AMZN) added 0.13%. However, Tesla (TSLA) declined 1.40%, and Microsoft (MSFT) fell 0.57%, reflecting the uneven impact of rising bond yields on growth stocks.

Healthcare and Financials Lead Dow Gains as Defensive Sectors Outperform at Open

The Dow Jones Industrial Average’s outperformance at the opening bell was largely driven by strength in healthcare and financial stocks, sectors that tend to benefit from higher interest rates. Johnson & Johnson (JNJ) surged 2.73%, while Merck (MRK) gained 1.07% and Amgen (AMGN) added 0.57%. Walt Disney (DIS) rose 2.05%, and JPMorgan Chase (JPM) advanced 1.10%.

Goldman Sachs (GS) climbed 0.84%, while American Express (AXP) surged 1.55%, reflecting optimism about improved net interest margins in a higher-rate environment. Verizon (VZ) gained 0.62%, and Boeing (BA) advanced 1.39%, contributing to the index’s positive performance.

However, Microsoft (MSFT) declined 0.65%, and Cisco Systems (CSCO) fell 0.85%, underscoring the divergence between value-oriented and growth-oriented stocks. The Dow Jones Industrial Average ETF (DIA) holdings data showed that technology stocks represented only a modest portion of the index’s composition, limiting its exposure to the tech sector’s weakness.

Chevron Announces $7 Billion Venezuela Investment as US Secures Oil Assets

Chevron Corporation (CVX) announced plans to invest more than $7 billion in expanding its presence in Venezuela, marking the largest financial commitment by a US company in the country since the removal of former leader Nicolás Maduro. The investment, which grants Chevron additional acreage in Venezuela’s Orinoco Belt oilfields, is intended to double production to approximately 600,000 barrels per day over the next five years.

Also Read: US Stock Market Timings

The announcement comes as the US government takes a major equity stake in Venezuela’s oilfields under a deal with private company North American Blue Energy Partners (NABEP) . The Pentagon’s Office of Strategic Capital will take a 35% equity stake in NABEP’s parent company, giving the US State Department the right to purchase 20% of the oil produced from NABEP’s current and future fields at production cost. The deal also grants the US the first opportunity to purchase the remaining 80% of production.

Chevron shares traded at $211.35, up 0.14%, as investors digested the news at the open. The investment aligns with broader efforts to rebuild Venezuela’s oil sector following recent political shifts, with other global firms including Eni and ONGC expected to finalise agreements this week.

Global Markets Suffer as Japanese Nikkei Drops 2.85%, KOSPI Plunges 4%

The impact of rising oil prices and geopolitical tensions was felt acutely in Asian markets, where technology-heavy indices suffered substantial losses ahead of the US open. Japan’s Nikkei 225 closed 2.85% lower at 64,325.64, while South Korea’s KOSPI fell 4% to 6,562.72. Australia’s S&P/ASX 200 dropped 0.97% to 8,978.40, and Hong Kong’s Hang Seng Index declined 0.24% in its final hour of trading.

European markets opened lower on Wednesday, with the Stoxx 600 falling 0.28% as media stocks led losses, declining 1.4%, followed by European automakers and parts names, which slipped 1.2%. Germany’s DAX began the session 0.44% lower, while France’s CAC 40 dipped 0.15% and the UK’s FTSE 100 fell 0.24%.

The global bond sell-off intensified, with the UK 10-year Gilt yield rising more than 4 basis points to 5.266% and the longer-dated 30-year Gilt yield at 5.8537%. European gas prices reached their highest levels since the start of 2023, further contributing to inflation concerns across the continent.

Credo Technology Plunges 17.67% on Gross Margin Concerns Despite Earnings Beat

Credo Technology (CRDO) , an artificial intelligence networking company, saw its shares plummet 17.67% at the opening bell after reporting fiscal first-quarter results that beat earnings expectations but revealed a concerning decline in gross margins. The company reported adjusted earnings of $1.20 per share, a 131% increase year-over-year, on sales of $479 million, surpassing Wall Street estimates of $1.17 per share on sales of $473.3 million.

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However, gross margin fell to 68% from 68.3% in the previous quarter, triggering concerns about pricing pressure and competitive dynamics in the AI networking space. The company’s guidance for the current quarter came in ahead of estimates, but the margin compression overshadowed the positive outlook.

MongoDB (MDB) also suffered significant losses, plummeting nearly 13% after its earnings report, while Ollie’s Bargain Outlet (OLLI) surged nearly 4% on better-than-expected results. Investors are now turning their attention to earnings reports from Broadcom (AVGO) and Snowflake (SNOW) , both scheduled to report after Wednesday’s closing bell, which are expected to provide further insights into the health of the technology sector.

New York Fed President Williams Says Yield Surge Reflects Strong Economy

New York Federal Reserve President John Williams offered comments on the recent surge in Treasury yields, stating that the increase is a product of a strong economy rather than market dysfunction. Williams, speaking in a CNBC interview on Wednesday morning, emphasised that he is still absorbing economic data and declined to commit on whether an interest rate hike is necessary at the September meeting.

“I think that we have to wait and see,” Williams told CNBC’s Steve Liesman. “There’s no clear signs right now whether monetary policy currently is sufficient to make sure we bring inflation back to target in the next year or two, or whether you need to see further action to do that.”

Commerce Secretary Howard Lutnick expressed confidence in the economic outlook, stating that a pickup in the growth rate of the US economy, along with a reduction in the deficit, would ultimately “bring rates down.” Lutnick told CNBC’s “Squawk Box”: “I’m comfortable with where things are. I think what you’ll see is rates stabilise and start to decline over the coming, let’s say, six months.”

Uber Technologies to Cut 10% of Workforce in Management Overhaul

Uber Technologies (UBER) announced plans to eliminate 3,300 jobs, representing approximately 10% of its global workforce, as part of a broader corporate restructuring. The cuts specifically focus on streamlining leadership, reducing the total number of managers across the company by 20%. The ride-hailing company will also move to bring more workers back in-person, with only about 1% of employees allowed to work remotely going forward.

Also Read: What Are Fractional Shares?

Shares of Uber rose 0.42% in early trading, as investors welcomed the cost-cutting measures. The restructuring comes amid broader industry pressures, with technology companies increasingly focusing on operational efficiency following years of rapid expansion.

GitLab Surges 22% on Record Revenue as Software Development Platform Beats Estimates

GitLab (GTLB) emerged as the session’s biggest percentage gainer, with shares surging 22% to $55.80 after the software development platform delivered a strong fiscal second-quarter earnings report. Revenue rose 21% year-over-year to $286.3 million, exceeding the $273.1 million consensus estimate by approximately 4.8%. Adjusted earnings per share of $0.25 also beat expectations of $0.18 by 39%, reflecting improving operating leverage and continued enterprise adoption of its DevSecOps platform.

GitLab raised its full-year revenue guidance to $1.129 billion–$1.133 billion, implying 22–23% year-over-year growth, while increasing its adjusted EPS forecast to $0.85–$0.87. Customer spending also remained strong, with customers spending more than $5,000 annually increasing 20% year-over-year, while those spending over $100,000 annually rose 15%. The results indicate continued demand for software development and security tools despite broader market uncertainty.

MongoDB Tumbles 13.6% Despite Earnings Beat as Outlook Concerns Weigh

MongoDB (MDB) shares fell 13.6% to $335.28 at the open despite the cloud database company reporting better-than-expected fiscal second-quarter results. Revenue increased 30% year-over-year to $771.8 million, beating expectations by around 5%, while adjusted EPS of $1.90 exceeded the $1.61 consensus by 18%.

However, investors focused on the company’s outlook and valuation following a 26.7% monthly rally. Concerns around stabilising Atlas cloud database growth and intensifying competition also weighed on the stock.

HPE Gains 4.7% Ahead of Earnings on AI Server Optimism

Hewlett Packard Enterprise (HPE) gained 4.7% to $25.70 ahead of its fiscal third-quarter results. The move followed Dell Technologies’ strong earnings, reinforcing expectations for continued demand for AI servers and infrastructure. Investors are watching HPE’s AI-optimised servers, Cray supercomputers and GreenLake platform for signs of sustained enterprise spending.

Meanwhile, Eos Energy Enterprises (EOSE) surged 17% after announcing a partnership with Google and MN8 Energy for a West Virginia solar-plus-storage project. The development includes 86 MW of solar, 70 MW/280 MWh of lithium-ion storage and 10 MW/100 MWh of long-duration zinc-based storage.

Sirius XM Holdings (SIRI) rose 3.1% to $30.15 after Deutsche Bank upgraded the stock to Buy from Hold and raised its price target to $45 from $31. The brokerage cited improving fundamentals, subscriber stabilisation and cost-cutting efforts.

Separately, Berkshire Hathaway CEO Greg Abel said AI data centres represent a significant opportunity for the company’s energy business, highlighting their substantial electricity requirements. Abel also indicated that Berkshire’s investment in Alphabet was influenced by the technology company’s strong positioning in artificial intelligence.

Escalating US-Iran tensions, oil above $95 per barrel and 10-year Treasury yields at 4.81% have heightened market volatility. August ADP jobs of 38,000 versus 47,000 estimates signal labour-market weakness. Hormuz risks threaten inflation, while Dell’s strong AI orders offer support ahead of Broadcom and Snowflake earnings.

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