Stock Market Today: Dow, S&P 500, Nasdaq Slide as Treasury Yields Climb Amid Fed and Tariff Uncertainty
US stock market opens September with losses as Dow, S&P 500, and Nasdaq tumble. Treasury yields rise, gold hits record highs, and investors await key jobs report amid Fed and tariff uncertainty.
Wall Street stocks fell Tuesday as Treasury yields surged and investors braced for a critical US jobs report and ongoing tariff uncertainty.
US stocks fell sharply on Tuesday, opening September — historically Wall Street’s weakest trading month — on a sour note. Investors remain cautious ahead of a crucial August jobs report that could shape expectations for upcoming Federal Reserve interest-rate cuts.
Market Performance
- Dow Jones Industrial Average (^DJI): down 0.97% (−440 points)
- S&P 500 (^GSPC): down 1.2%
- Nasdaq Composite (^IXIC): down 1.46%
Big Tech stocks led the decline, with Alphabet (GOOGL) and Amazon (AMZN) both losing over 2%. Nvidia (NVDA) also dipped more than 1%.
Treasury Yields Surge
Bond markets faced pressure as yields climbed:
- 30-year Treasury yield (^TYX): jumped to 4.96%, nearing the key 5% level.
- 10-year Treasury yield (^TNX): hovered close to 4.3%.
Rising yields suggest heavy bond selling, reflecting investor uncertainty over the Fed’s policy path and mounting tariff-related tensions.
Economic and Political Drivers
- Jobs Report in Focus: Friday’s employment data will be critical for confirming or challenging market bets on a September rate cut. Current odds stand near 90% for a 25 basis point reduction, though weak data could spark calls for deeper easing.
- Gold Prices: surged past $3,500/oz, hitting a fresh record, fueled by expectations of lower interest rates.
- Fed Independence Concerns: Legal challenges around whether former President Trump can dismiss Fed Governor Lisa Cook have raised fears about political interference at the central bank.
- Tariff Shock: A federal appeals court ruled last week that Trump’s sweeping global tariffs were unconstitutional, prompting him to vow an appeal to the Supreme Court.
Global and Corporate Highlights
- European bond yields climbed to multi-year highs, while Japan’s 10-year bonds fell after a strong auction.
- CoreWeave (CRWV) stock plunged nearly 8%, extending a steep August selloff amid AI bubble concerns.
- Nestlé (NESN.SW) dipped after its CEO was dismissed over misconduct.
- PepsiCo (PEP) jumped 5% following reports of a $4B stake by Elliott Investment Management.
- Kraft Heinz (KHC) confirmed plans to split into two companies to revive growth.
- Nio (NIO) rose on better-than-expected earnings and strong Q3 delivery outlook.
- Natural Gas futures fell 3% after Russia signed a major pipeline deal with China.
