Crude Rises & 10-Year Yield Taps January 2025 Highs, AI Chips Lead Decline

• Equity futures are lower, with September historically being the worst month for market performance.
• US 10-year Treasury yield is at its highest level since January 2025, with global yields also rising significantly.
• Crude oil prices are at five-week highs near $88/barrel, fueled by geopolitical tensions in the Middle East.
• Semiconductor stocks are broadly falling, with higher yields stunting gains in the tech sector.
• Amazon is being sued by the FTC and 22 states for allegedly deceiving advertisers and inflating prices.

Financial markets are starting September with a bearish tone, driven by rising global bond yields, elevated crude oil prices due to geopolitical tensions, and increased expectations for a Fed rate hike. The semiconductor sector is experiencing a significant pullback, and Amazon faces a major FTC lawsuit, adding to the negative market pressures.