U.S. stocks opened lower Tuesday as rising Treasury yields, higher oil prices, and renewed Middle East tensions weighed on risk appetite. The Dow Jones Industrial Average fell about 0.4%, the S&P 500 fell roughly 0.3%, and the Nasdaq Composite dropped close to 0.5% after a steeper decline earlier in the session.
Investors were also reassessing the outlook for Federal Reserve policy after Chair Kevin Warsh’s hawkish Jackson Hole remarks revived speculation that rate hikes could return. With the 10-year Treasury yield hovering near 4.75% and Brent crude above $92 per barrel, markets faced a difficult mix of tighter financial conditions and renewed inflation concerns.
Market Movers:
- GoPro (GPRO) +58%: Shares exploded higher after GoPro agreed to merge with Starman in a deal that will pay shareholders roughly $285 million in cash, or $1.14 per share, while leaving them with about a 10% stake in the combined company. The transaction also expands GoPro into AI infrastructure through Starman’s U.S.-made optical transceivers, opening potential opportunities across defense, robotics, aerospace and government markets.
- Novartis (NVS) +6%: Shares rose after remibrutinib met the primary endpoints in two Phase III trials for relapsing multiple sclerosis, significantly reducing annualized relapse rates compared with teriflunomide. The positive results support upcoming regulatory filings, though gains were tempered by the suspension of several trials involving the company’s experimental CAR-T treatment following three patient deaths.
- Comstock Resources (CRK) +6%: Shares climbed after the natural gas producer signed a letter of intent with Azerbaijan’s SOCAR for a $1.65 billion investment across its Haynesville assets. Comstock also announced a roughly $450 million drilling partnership backed by the Jerry Jones family, strengthening its balance sheet while accelerating development of its natural gas acreage.
- Alumis (ALMS) -54%: Shares collapsed after lead drug candidate envudeucitinib failed to meet primary and secondary endpoints in a Phase 2b trial involving patients with systemic lupus erythematosus. A stronger response in a prespecified subgroup could leave the door open for further development, but the disappointing headline results dealt a major blow to the biotech’s pipeline outlook.
- NIO (NIO) -4%: Shares fell after second-quarter revenue of $4.74 billion missed Wall Street expectations despite surging 69.1% from a year earlier. Deliveries rose nearly 50% and adjusted EPS beat estimates, but investors focused on the revenue shortfall and slight sequential decline in gross margin.
- Metallus (MTUS) -3%: Shares slipped after the specialty metals company announced that CEO Michael Williams will retire at the end of 2026. President and COO Kris Westbrooks will take over as CEO in January, while Williams will remain as an adviser through June 2027 to help oversee the transition.
Bond Yields Put Pressure on Growth Stocks
Treasury yields remained one of the biggest headwinds for equities Tuesday. The 10-year yield climbed near 4.75%, its highest intraday level since early 2025, while the 30-year yield hovered around 5.24% after briefly moving even higher.
The jump comes as markets reconsider whether the Fed could resume tightening if inflation remains stubborn. Higher yields tend to pressure richly valued technology and growth stocks by increasing discount rates and making bonds more competitive with equities, helping explain the Nasdaq’s underperformance early in the session.
Oil Jumps as Middle East Tensions Rise Again
Energy markets added another layer of uncertainty after two oil supertankers were reportedly struck while attempting to exit the Strait of Hormuz. Brent crude climbed above $92 per barrel, while U.S. benchmark WTI rose toward $89 as traders priced in renewed risks to Gulf shipping and global supply. The timing is particularly uncomfortable for Wall Street because higher energy prices could complicate the inflation picture just as investors are debating the possibility of additional Fed tightening. Any prolonged disruption in the Strait of Hormuz would carry outsized significance given the region’s importance to global oil flows.
Labor Market Holds Steady Ahead of Friday’s Jobs Report
Tuesday’s economic data offered a relatively calm reading on employment. Job openings edged up to 7.3 million in July from a revised 7.2 million in June, while hiring cooled slightly to 5.1 million. The report reinforced the picture of a “low hire, low fire” labor market, with layoffs remaining subdued even as companies become more cautious about adding workers. Attention now shifts to Friday’s August payroll report, where economists are looking for roughly 55,000 new jobs after a contraction in July.
Looking Ahead
Wall Street enters September facing a more complicated backdrop than it enjoyed through much of the summer. Earnings expectations remain strong and corporate profits continue to support equities, but climbing bond yields, renewed geopolitical tensions and another surge in oil prices are giving investors reasons to become more defensive. Friday’s jobs report could provide the next major test for markets, especially after Warsh’s hawkish Jackson Hole message put Fed policy back in focus. A strong labor reading could reinforce expectations that rates stay higher for longer, while softer data may offer some relief — provided it does not revive fears of a sharper economic slowdown.