Closing Bell Overtime: Markets Face a New September Test 9/1/26

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**Mike Santoli** (1:02)
The Bells bringing an end to the trading day at the NYSE A10 Networks, ringing the bell, and at the NASDAQ Legions doing the honors. Welcome to Closing Bell Overtime live from Studio B at the NASDAQ Market site. I'm Mike Santoli. Melissa Lee is off today. Stops solidly lower today. The Dow losing 400 points. The S&P 500 down about three quarters of 1%. The NASDAQ Composite and NASDAQ 100 both down more than 1%.
Oil and bonds leading the dance today. Oil getting back to $90 a barrel on new strikes on Iran. And bond yields higher as well. The 10-year getting to 4.79. At some point touched 4.8%. Global yields rising as well. More on all of that coming up. So what worked today? Energy was the top sector as oil jumped. And the traditional defensive groups, staples and utilities, they also gained. Among the worst performers in tech today were Software and Cybernames, CrowdStrike and Oracle, and you can see Palo Alto and Dell, among the bigger decliners, down more than 5%.
Both of those companies are expected to report results. Momentarily, we'll have those numbers for you as soon as they cross. We begin, though, with those big moves in the bond market. Rick Santelli live in Chicago with more. Hello, Rick.

**Rick Santelli** (2:17)
Yes, what a wild day. And no matter where you look, the advanced economies of the world are all in a very similar straight. Now, if you look at our 10-year, this chart goes back to October of 23, because we usurped that 479 that, of course, was in January 25 We've been comping to, we're a bit above that, not much, but we're a bit above that for what will be a new cycle high-yield close. But honestly, it is all about oil today. And its big move, as a matter of fact, we are now in the October futures contract very near the highs that were established in what, May on round one of the Gulf War, getting very close. There's tens in oil. You could see how they are dancing together. Mike, as you pointed out, but it isn't only the US. Matter of fact, the percentages on the US are small compared to, let's add the UK, the EU and the French. This is all from the 2nd of March, which is the first business day after the war began on February 28th. It's pretty hard to argue with that. Now, we could all talk about debt and deficits. We could talk about all the variables that are part of the brigade that is pushing up interest rates. But truly, looking at that chart and seeing how all the major sovereign debts in those economies are moving the same, it is what's going on with energy, supply shocks, confusion with long-lasting inflation, how it's going to end up, nobody knows. But I can tell you one thing, Mike, there is a whole lot more concern lately on the war than there ever was before the Memorandum of Understanding chapter of the Middle East. Back to you.

**Mike Santoli** (4:00)
Yeah, sure. It seems markets are at least bracing for the possibility of just this kind of open-ended situation does not quickly get fixed and obviously get to those oil prices coming down. Rick, at the same time, whether it's the right response or not, it seems that central banks are going to be hiking, not just here. I mean, at least we think here, the market thinks there's going to be some hikes here into this inflationary move in oil.
I guess the question is how longer-term yields respond to that because yields have been going up on the longer run, even as the hike probabilities have climbed. So even if we get the curve flattening, maybe it doesn't mean that dramatic a flattening.