Dow Jones Industrial Average futures dropped about 300 points at the start of the shortened trading week as Wall Street monitored rising tensions in the Middle East and renewed trade conflicts between the U.S. and Canada. While the S&P 500 futures remained mostly steady and Nasdaq-100 futures edged slightly higher, overall market sentiment was cautious. The U.S. markets had been closed on Monday for Labor Day, and worldwide, Asia-Pacific markets showed mixed results, with South Korea’s Kospi gaining 1.66% but Hong Kong’s Hang Seng slipping 0.65%. Crude oil prices reached six-week highs amid the ongoing U.S.-Iran conflict, pushing Brent crude to $97.74 per barrel and West Texas Intermediate to $93.13.

The sharp increase in oil prices has pushed Treasury yields higher, reflecting concerns that elevated energy costs could stoke inflation. The 10-year Treasury note yield reached its highest level since November 2023, and the 2-year yield hit a peak unseen since early 2025. This surge in bond yields comes ahead of multiple central bank meetings in the coming weeks, including the Federal Reserve's policy gathering next week. Current market pricing shows about a 60% probability of a quarter-point rate hike at the Fed’s September meeting, with upcoming inflation data set to heavily influence traders’ outlooks.

Trade tensions have also escalated as Canada implemented retaliatory tariffs on $20 billion worth of U.S. goods on Tuesday, amid a dispute sparked by President Donald Trump’s recent directive that Canadian airplane maker Bombardier must manufacture its products in the U.S. to sell in the American market. Trump emphasized this stance sharply on social media, marking an intensification of trade friction between the two neighboring countries. The broader geopolitical and trade conflicts compounded market uncertainty at the start of the week.

In corporate news, Taiwan-based Nvidia supplier Wistron saw its shares drop over 5% after announcing a global stock offering valued at approximately $1.47 billion to fund raw material purchases. The company plans to issue 25 million global depositary receipts at a discount, representing around 7.29% of its outstanding shares prior to the offering. Wistron, which has experienced a 23% rise in share value so far this year, is expanding its AI server production capacity in Taiwan and the U.S. This fundraising effort aligns with its ambitions to capitalize on growing demand in AI infrastructure amid global technological advancements.