Stock Market Update

Traders on the floor of the New York Stock Exchange were busy on the morning of September 2, 2026.

Early Friday, stock futures showed a slight increase as investors anticipated the consumer price index (CPI) report for August. S&P 500 futures rose by 0.19%, while Dow Jones Industrial Average futures gained 151 points. Meanwhile, Nasdaq 100 futures were up less than 0.1%.

Reflecting on the previous trading day, the Dow had a challenging performance, dropping more than 300 points, or 0.6%. The S&P 500 also fell by 0.6%, and the Nasdaq Composite was down 0.7%. This marked the fourth consecutive day of losses for these major indices.

For the week, the Dow is projected to decline by 2.5%, while the S&P 500 and Nasdaq are both expected to drop by 1.6%.

On the other side of the world, Asia-Pacific markets closed lower on Friday. South Korea’s Kospi index decreased by 1.76%, Japan’s Nikkei 225 lost 1.93%, the CSI 300 in mainland China dropped by 0.84%, and Hong Kong’s Hang Seng Index saw a decline of 0.6% during the final trading hour. Australia’s S&P/ASX 200 also fell, closing down 0.89% at 8,741.2.

Specifically, South Korean stocks were among the worst hit, with the Kospi index noting a 2.8% downturn. Japan’s Nikkei 225 decreased by 2.6%, Hong Kong’s Hang Seng Index slipped 1.4%, and the CSI 300 decreased by 0.9%. Australia’s S&P/ASX 200 experienced a 1% decline.

The drop in stocks on Thursday was linked to rising oil prices, as West Texas Intermediate crude futures surged to over $100 per barrel. Both U.S. oil and international Brent crude reached their highest settlement prices since mid-May, attributed to the ongoing conflict between the U.S. and Iran entering a seventh month.

As oil prices climbed, interest rates also surged, with the yield on the 10-year note surpassing 4.95%, the highest level since October 2023.

Traders were also evaluating the August producer price index (PPI), a key measure of wholesale inflation, which rose by 0.4% month-on-month and 5.4% year-on-year.

Now, everyone is looking forward to the CPI report for August set to be released on Friday. Economists surveyed by Dow Jones expect a 0.4% monthly increase and an annual rate of 3.4%. This report will be crucial for the Federal Reserve’s decision regarding interest rates on September 16. Current trading in Fed funds futures indicates about a 71% chance of an interest rate hike, according to the CME Group’s FedWatch tool.

The results of the CPI report will significantly influence whether the Fed opts to maintain current rates or implement an increase, as noted by Christopher Hodge, chief economist at Natixis CIB Americas. He mentioned, “A reading in line with consensus would mark the fourth straight month of positive inflation readings, easing pressure on the Fed for a September hike. However, if inflation exceeds expectations, we anticipate a rate increase at the upcoming meeting.”