2025.09.0220:02:54UTC+00US Stocks Fall as Yields Rise and Tariff Ruling Hits Sentiment

In a challenging start to September, Wall Street faced declines as U.S. stocks fell alongside a downturn in the bond market, underscored by uncertainties related to trade policy, interest rates, and economic data. Specifically, the S&P 500 experienced a 0.7% decrease, while the tech-focused Nasdaq fell 0.9%, continuing its streak of significant losses. The Dow Jones Industrial Average also dropped by 250 points. A contributing factor was the rise in Treasury yields, with the 10-year yield nearing 4.3% and the 30-year approaching 5%, creating hurdles for equities. Market sentiment took another hit when a federal appeals court deemed the majority of Trump’s tariffs illegal; however, these tariffs will stay in effect until October 14, pending a Supreme Court review. Market participants are now focusing on the upcoming August employment report, anticipated on Friday, which may influence the Federal Reserve’s decision on interest rates. Currently, the market is anticipating a 25 basis point rate reduction. U.S. manufacturing also contracted for the sixth consecutive month, heightening concerns about economic growth. On the corporate side, Nvidia saw a 2% decrease in its stock value, Qualcomm declined 1.2%, and Kraft Heinz plummeted 7% following its announcement to split into two separate entities.