The Prime Daily: 02 September 2026

Authored By Prime Research | Published at: Sep 2, 2026 09:18 AM IST

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Markets Slide as Iran Tensions Escalate; Yields, Oil Surge

U.S. equities fell sharply as fresh strikes between the U.S. and Iran drove investors into risk-off positioning. The Nasdaq Composite dropped over 1%, while the S&P 500 and Dow each fell 0.8%, extending a third consecutive losing session.

Energy markets moved aggressively on the news. Brent crude jumped to $95 a barrel, while WTI closed above $90 for the first time in over a month lifting shares of Chevron and ExxonMobil.

Treasuries sold off globally, pushing the 10-year yield to 4.79%, its highest level since early 2025.

Rising energy costs are stoking fears of sticky inflation, adding pressure to borrowing costs and weighing on richly valued equities complicating the Fed’s next policy move.

Yields in Japan and the U.K. also pushed toward multi-decade highs, while the 30-year Treasury yield hovered near a two-decade high. In Europe, annual inflation rose to 3.3%, adding to pressure on the ECB.

Gold fell more than 3% in a single session yesterday as rising yields dented safe-haven demand, snapping its strong August rally.

The Indian rupee is on a winning streak, logging its third straight day of gains and outperforming its Asian peers, appreciating 21 paise to close at 94.95, its highest level in two months, supported by strong domestic growth numbers even as geopolitical tensions simmer and the central bank steps in to supply dollars.

Nifty declined for the second straight session, falling 24 points to close at 24,055 yesterday. A 70-point uptick during the CAS settlement helped the index protect the crucial 24,000 support. The 24,200–24,250 band is likely to remain strong resistance, with multiple moving averages clustered there.

Markets are likely to breach 24,000 at the open, and that could drag the index toward the next support band of 23,823–23,890.

Indian equities are poised for a subdued opening, weighed down by negative global cues weaker U.S. and Asian markets, rising bond yields, and surging energy prices.

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