Tech Stocks Rebound Amid US Treasury Stabilization... Oil Prices at $90, Real Risks Remain

On September 2 (U.S. time), the New York stock market rebounded after four straight sessions of losses. The Dow Jones Industrial Average rose 0.6% to 53,061.95, the S&P 500 gained 0.5% to 7,666.60, and the Nasdaq Composite added 0.5% to close at 26,217.83. With bond yields that had driven the recent pullback calming, Nvidia surged over 3% and Dell, buoyed by strong earnings, jumped about 10%, leading the tech sector’s advance.

August’s ADP private payrolls increase came in at a “moderate level,” suggesting that the labor market, which had overheated since spring, is cooling. Consequently, the 10-year U.S. Treasury yield eased to 4.78%, pausing its recent sharp climb. However, hawkish comments from Fed officials have priced in roughly a 60% chance of a rate hike at the September FOMC, leaving the door open for renewed volatility depending on upcoming employment and inflation data.

On the global risk front, oil prices remained elevated amid the fallout from the Iran war, with Brent crude trading above $95 per barrel. At the same time, the U.S. government’s easing of sanctions on Venezuela and Chevron’s plans to ramp up local production helped ease some supply concerns, boosting energy stocks. Yet if oil prices rise further from these levels, inflationary pressures and additional tightening worries could resurface, so Korean investors should closely monitor both employment figures and oil price trends.