Stock futures fell on Tuesday, the first day of September, as inflation worries and elevated oil prices lifted bond yields in the U.S. and abroad, raising concern about whether the Federal Reserve will tighten monetary policy later this month.

Dow Jones Industrial Average futures shed 335 points, or 0.6%. S&P 500 futures shed 0.6% as well, while Nasdaq-100 futures
 pulled back 1.2%.

Tech stocks fell broadly. Nvidia, Advanced Micro Devices and Micron Technology
 were all down more than 1%. Microsoft
 lost 1% as well, while Google-parent Alphabet
 slipped 0.6%.

Global bond yields continued their march higher. The U.S. 10-year Treasury
 note yield scaled to levels not seen since January 2025. Japan’s 10-year
 yield reached its highest level since August 1996, while Germany’s benchmark yield rose to a 2011 high.

Yields around the world have been rising recently as traders worry that persistently higher oil prices may drive inflation. On top of that, September has been a historically bad month for stocks.

“The market is exhibiting signs of nervousness across myriad of indicators,” traders at Goldman Sachs wrote, pointing to new American Association of Individual Investors Sentiment Survey data. “This attitude toward risk is not just theoretical, investors are quite literally putting their money where their mouth is in terms of portfolio risk allocations.”

U.S. oil
 prices continued their climb Tuesday, rising more than 2% to trade above $87 per barrel. Brent futures
 also gained more than 1% to trade around $92.

The moves come as traders weighed tensions in the Middle East following a resumption of military action between the U.S. and Iran. On Monday, a tanker passing through the Strait of Hormuz was hit by three unknown projectiles. Additionally, President Donald Trump threatened to respond to Iran’s latest attacks on U.S. military bases in the region, telling Fox News Monday that “we are going to hit them hard.”

In Asia, Japan’s Nikkei 225 closed 0.15% lower, while South Korea’s Kospi
 rose 0.23%. Australia’s benchmark S&P/ASX 200
 fell 0.10%. Mainland China’s CSI 300 closed 0.30% lower.

European stocks were broadly lower, with the regional Stoxx 600 index down 0.6% in mid-morning trade. Oil and gas stocks bucked the trend, trading 1.3% higher and tracking gains in crude prices
.