The S&P 500 Index ($SPX) (SPY) and Dow Jones Industrial Average ($DOWI) (DIA) are all down, with the Nasdaq 100 Index ($IUXX) (QQQ) down -0.23%. This comes as Middle East tensions rise, with an Iranian drone attack causing a fire at the UAE's Fujairah oil industry zone and an oil tanker being hit by Iranian drones outside the Strait of Hormuz. Stocks initially moved higher, with stocks posting a new all-time high. However, tensions escalated when the United Arab Emirates issued a missile threat warning. The WTI crude oil prices recovered from early losses and are up more than +3% after Iran launched a drone and missile attack against the UAE. The markets are discounting a 5% chance of a FOMC rate cut at the next FomC meeting. European government bond yields are also moving higher, raising inflation expectations. The Euro Stoxx 50 is down -1.22%, while China's Shanghai Composite did not trade, with markets closed for the Labor Day holiday.