The Money Edit

Opening bell

Opening bell

S&P futures 7,656 0.6%
Japan 10 year to 3.00%
Brent crude $92 2%
US 10 year yield to 4.79%
UK 10 year gilt to 5.25%
Nikkei 225 0.19%

Bond rout deepens as September trading opens

Overnight

US stocks ended August on a soft note, with the S&P 500 closing Monday at 7,686, down 0.33%, and the Dow falling 373 points to 53,186, though both still finished the month higher. Overnight the action was in government bonds rather than shares, as Japan's 10 year yield touched 3% for the first time since 1996, UK 10 year gilts reached 5.25% and the US 10 year pushed to about 4.79%, its highest since January 2025. Equity markets were calmer, with the Nikkei 225 slipping 0.19% and Europe's STOXX 600 flat at 651.35, but US futures pointed down, the S&P 500 contract off 0.57% and the Nasdaq 100 off 1.02%.

What to watch

The August ISM manufacturing survey lands this morning, a monthly poll of factory purchasing managers in which any reading above 50 means the sector is growing, and it is expected at 55.2. The JOLTS report on job openings, a count of unfilled positions employers are advertising, is forecast at about 7.33 million, and a strong pair of numbers would strengthen the case for higher rates that Fed Chair Kevin Warsh has been making, adding to the pressure already showing in yields. Fed Vice Chair for Supervision Michael Barr speaks today, and eurozone August inflation is due, which matters more than usual now that traders expect the European Central Bank to raise rates in September.

Sources