Nasdaq pares decline to 0.8% with $88 oil sustaining rate pressure

NEW YORK, September 1, 2026, 11:00 EDT

At 10:59 EDT, the S&P 500 was at 7,650.34, a decrease of 0.47%.
The Nasdaq Composite trimmed its decline to 0.76%, recovering from a 1.16% drop recorded an hour before.
At the cutoff, four sector funds gained, six declined and one remained unchanged.
WTI crude hovered close to $88 while the 10-year Treasury yield hit 4.77%.

By 11:00 EDT on Tuesday, U.S. stocks had trimmed earlier declines. Oil hovered close to $88 and the Treasury yield stood at 4.77%, but the Nasdaq Composite remained 0.76% lower. The S&P 500 dropped 0.47% Google Finance.

The rebound helped soften the initial blow but did not shift market leadership. Over the prior hour, the S&P climbed 17 points. The Nasdaq recouped 106 points, although both indexes remained in negative territory.

S&P 500: opening loss narrows

Index level, selected one-minute observations

7,650.34 −0.47%

As of September 1, 2026, 10:59 EDTSource: Google Finance

The rebound was limited. As of 10:59 EDT, four sector funds moved higher, six fell, and one held steady. Staples outperformed, with technology and consumer discretionary trailing as the softest performers.

Two windows tell different stories

Session return versus the immediately preceding 60 minutes, through 10:59 EDT

S&P 500

Session−0.47%

Last hour+0.22%

Nasdaq

Session−0.76%

Last hour+0.41%

Dow

Session−0.39%

Last hour+0.18%

Levels: S&P 7,650.34; Nasdaq 26,171.44; Dow 52,976.82. Sources: S&P 500, Nasdaq, Dow.

Valuation remains under pressure from oil and interest rates. WTI stood at $87.65 at 10:51 EDT, increasing 2.20%. The 10-year U.S. Treasury yield was at 4.77% at 10:50 EDT. Brent earlier gained 2% to reach $92.33 following disruptions in the Strait of Hormuz due to Middle East conflict Associated Press.

New factory figures pointed to continued expansion but provided no respite on rates. The ISM manufacturing index for August came in at 54.6, compared to 55.6 previously. Its prices index remained unchanged at 71.1, extending a streak of rising input costs to a 23rd straight month Institute for Supply Management.

Labor demand stayed strong. Job openings in July rose slightly to 7.3 million. Both hires and separations stayed close to 5.1 million U.S. Bureau of Labor Statistics.

Major stocks showed a mixed performance. NVIDIA Corp. NASDAQ:NVDA was down 1.38% at 10:59 EDT. Micron Technology Inc. NASDAQ:MU slipped 0.65%. Exxon Mobil Corp. NYSE:XOM advanced 1.40%, and Devon Energy Corp. NYSE:DVN increased 1.08%.

Defensive and energy shares hold the lead

4 higher6 lower1 flat

Consumer staples · XLP+0.91%

Energy · XLE+0.71%

Health care · XLV+0.63%

Utilities · XLU+0.52%

Real estate · XLRE0.00%

Communication · XLC−0.07%

Financials · XLF−0.28%

Materials · XLB−0.78%

Industrials · XLI−0.91%

Consumer discretionary · XLY−1.30%

Technology · XLK−1.31%

Representative Select Sector SPDR returns at 10:59 EDT. Quote sources: XLP, XLE, XLK.

ETF volume reflected the technology emphasis. According to Google Finance minute bars, 6.68 million QQQ shares traded by 10:59 EDT. SPY saw 1.21 million shares change hands during the same 90-minute period.

Pressure on rates could continue. “The balance of risks still points to yields remaining elevated,” William Blair macro analyst Richard de Chazal wrote ahead of the open Reuters.

Fisher Investments data, reported by Reuters, shows the S&P 500 has seen an average drop of 0.7% in September since 1926. The upcoming payrolls report on Friday will be the next significant measure for rate outlooks.

Risks: Oil prices may swiftly change if diplomatic developments occur. A drop in yields might benefit long-duration technology stocks and reduce the sector gap. Conversely, an additional supply shock could increase the divide.

The 60-minute recovery was notable, yet the market continued to reflect an inflation premium. By 11:00 EDT, defensive sectors and elevated crude prices provided the dominant signal.