Stocks fall, bond rout deepens as US and Iran trade attacks

On September 2, global stock markets experienced a decline as the United States launched airstrikes against Iranian military targets near the Strait of Hormuz. This move intensified oil prices, which had already risen to five-week highs, amplifying concerns about inflation. The bond market also faced a significant sell-off, with the yield on the benchmark U.S. 10-year Treasury bond reaching an intraday high of 4.8122 percent, its highest in almost three years.

The U.S. dollar index also strengthened, gaining 0.05 percent at 99.734, near its highest since August 17. This trend is attributed to the market's increased preference for the dollar as a safe-haven asset due to the hawkish outlook from the Federal Reserve. Market participants are now looking forward to September 16, when the Fed is expected to make a decision on interest rate hikes, adding to the market's uncertainty.