M Alfathan Rahman
M Alfathan Rahman
Wall Street opens September squeezed between an oil spike and the shadow of a Fed rate hike.
Wall Street closed lower on Monday, the first trading day of September. The S&P 500 slipped 0.33% and the Dow fell 0.7%, though both still finished August higher.
Two linked forces drove the move. Oil surged after fresh US-Iran escalation, while the market grew more convinced the Fed leans toward raising rates. Together they pressured risk assets and lifted energy.
Tonight the question is simple. Who benefits from the oil rally, and who feels the squeeze from rising yields.
| Stock | Movement | What to Watch |
|---|---|---|
| SLB | Mon up ~4% | Energy's biggest gainer, most levered to oil through oilfield services |
| CVX | Mon up ~3% | Chevron rides the oil rally and a possible Venezuela energy reopening |
| XOM | Mon up ~3% | ExxonMobil climbs; Trump signaled Exxon may enter Venezuela |
| NVDA | AI catalyst live | A US$3.5B MediaTek stake and the Anthropic-Lambda cloud deal keep AI in focus |
| GOOGL | Pressured, yields up | Rate-sensitive, yet says its AI capacity still cannot be built fast enough |
Brent pushed back above US$90, up roughly 3% and briefly near US$91, after US forces struck missile launchers on Larak Island near the Strait of Hormuz. Energy was the only S&P 500 sector in the green, led by XOM, CVX, and SLB.
The market now prices better-than-even odds of a rate hike at the Fed's mid-September meeting. The US 10-year Treasury yield rose to 4.76%, its highest since early 2025, while gold slipped to a two-week low.
On the other side, the AI theme stays hot. Nvidia is investing US$3.5B in MediaTek and Anthropic signed a US$35B cloud deal with Lambda. Alphabet even says it cannot build AI capacity fast enough.
US futures were steady ahead of tonight's session as markets digested rate risk and the Iran escalation. Asian markets leaned lower, following Wall Street, even as China's manufacturing PMI topped forecasts.
Oil and yields are tonight's two levers. Higher oil adds to inflation pressure, which in turn strengthens rate-hike expectations. That loop is what leaves rate-sensitive stocks exposed.
This is not a one-direction market. The oil rally gives energy room to run, while rate-hike fears weigh on growth names. The AI theme is the interesting counterweight to watch.
The key is spotting which catalyst holds into tonight's close. What stocks are you watching tonight?
Track the moves and build your own watchlist right in the app.
Disclaimer
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
