Dow Futures Climb While S&P 500, Nasdaq Futures Slide After Strong August Rally: TTWO, TSLA, EIX, MDB Stocks In Focus

All three indexes ended August higher, bolstered by strong earnings from marquee names and stronger investor sentiment despite a turbulent month when Treasury yields jumped to historic highs.

• September is set to kick off amid a backdrop of rising geopolitical tensions after the U.S. struck two Iranian rocket launchers late Sunday.
• Meanwhile, U.S. President Donald Trump on Monday ruled out using nuclear weapons against Iran at an Oval Office event. 
• U.S. Treasury yields are back on an upward trajectory, with the U.S. 10-year Treasury yield climbing to 4.776%, the highest level since Jan. 2025.

U.S. stock futures were mixed in the overnight session late Monday after a strong August rally that saw all three benchmark indexes end the month higher. 

Dow futures climbed 0.07%, while the S&P 500 and Nasdaq-100 futures fell 0.04% and 0.22%, respectively, at 10:38 PM EDT.  

On Monday, all three benchmark indexes closed lower amid rising political tensions as the U.S. attacked Iran’s Larak Island over the weekend. The Dow Jones Industrial Average led the decline, losing about 374 points to close down 0.70%. The S&P 500 and Nasdaq Composite fell 0.33% and 0.12%, respectively.

Index	Move	Close
Dow Jones Industrial Average	-0.70%	53,185.90
S&P 500	-0.33%	7,686.14
Nasdaq Composite	-0.12%	26,370.89

All three indexes ended August higher, bolstered by strong earnings from marquee names and stronger investor sentiment despite a turbulent month when Treasury yields jumped to historic highs. 

Key US Market Drivers

September is set to kick off amid a backdrop of rising geopolitical tensions after the U.S. struck two Iranian rocket launchers late Sunday. ⁠Iran reportedly responded by striking ​U.S. forces in ‌Jordan, ⁠although no significant damage was caused.  

Meanwhile, U.S. President Donald Trump on Monday ruled out using nuclear weapons against Iran. At an Oval Office event on Aug. 31., the president responded to a reporter’s query about nuclear intervention, saying, "But the answer's yes. I rule out ‒ there's no reason for it." He added, "What a stupid question that is actually is. Here they are, they're totally defeated militarily. So now, I defeat them and now I should use a nuclear weapon on top of them? What a stupid question."

In a separate post on Truth Social, Trump said that Iran is officially “a Failed Nation. IT IS DEAD!” He elaborated, saying, “They have no Navy, they have no Air Force, they have no currency, they are not paying their soldiers or police, Inflation is at 300%, and their leadership is in total disarray and incapable of properly representing the country. The only thing they have is FAKE NEWS from the USA, a willingness to kill their protesters (now over 100,000 people dead).” 

Oil prices continued to advance with no peace deal options in sight for a war that has dragged on for over six months. Brent crude futures expiring in November were up about 0.62% to trade at $91.05 a barrel at the time of writing. Meanwhile, WTI crude futures expiring in October were trading at $86.53 per barrel, up 0.90%. 

At the same time, U.S. Treasury yields are back on an upward trajectory, with the U.S. 10-year Treasury yield climbing to 4.776%, the highest level since Jan. 2025. The U.S. 30-year Treasury yield was trading at 5.271% at the time of writing. 

“The rise in longer-term US Treasury yields continued this morning, fully erasing the initial reaction to the US Treasury’s intervention announcement,” Mohamed El-Erian, Chief Economic Advisor at Allianz, said in a post on X. 

On the economic front, the August jobs report is set for release on Friday. Monthly data on the manufacturing and services sectors are also due this week. 

Noteworthy companies reporting earnings this week include Palo Alto Networks Inc. (PANW), Dell Technologies Inc. (DELL), Broadcom Inc. (AVGO), Snowflake Inc. (SNOW), and Lululemon Athletica Inc. (LULU).

Trending Stocks To Watch 

Take-Two Interactive Software, Inc. (TTWO): The company was on the retail radar amid investor concerns over escalating Grand Theft Auto 6 footage leaks ahead of the game’s Nov. 19 launch.

Tesla Inc. (TSLA): The electric vehicle company gained 5.5% at close on Monday following confirmation that its Optimus humanoid robot has entered production in Fremont, while the company also added pedal-less Cybercabs to its Texas robotaxi fleet, which now has more than 270 registered vehicles.

Edison International (EIX): The electric power company’s shares crashed more than 23% at close on Monday after California’s latest wildfire legislation failed to provide the financial protections Wall Street had expected, with the stock attracting a series of Wall Street downgrades. 

MongoDB Inc. (MDB): The database company was on the retail radar ahead of its second-quarter (Q2) results expected after market hours on Tuesday. 

Other Market Trends 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) were trading lower at the time of writing, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) was gaining. 

The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.82% amid ‘neutral’ sentiment.

Asian markets were trading lower at the open on Tuesday. South Korea's KOSPI, China’s SSE Composite, Japan’s Nikkei 225 and Australian stocks were all in the red at the time of writing. 

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