Stocks on Wall Street opened September on a defensive note as investors digested a landmark court decision on tariffs and a sharp jump in Treasury yields. All three major indices logged losses, reflecting profit-taking after a robust August and concerns that the headwinds for equities may intensify in a historically weak month. Seasonal patterns, trade developments, and bond market dynamics combined to temper sentiment at the start of the new trading period.
Wall Street Index Performance at a Glance
| Index | Close | Change |
|---|---|---|
| Dow Jones Industrial Average | 45,295.81 | −249.07 (−0.55%) |
| S&P 500 | 6,415.54 | −44.65 (−0.69%) |
| Nasdaq Composite | 21,279.63 | −176.92 (−0.82%) |
| CBOE Volatility Index (VIX) | 17.17 | +1.05 (+6.51%) |
Investors on Wall Street rotated out of this year’s top performers, locking in gains as summer wound down. Notable moves included:
- Nvidia shares falling roughly 2% after a summer rally that saw the AI chip maker leading gains.
- Amazon and Apple each retreating about 1% amid broad technology profit-taking.
- Underperformance in the Technology Select Sector SPDR (XLK) and Consumer Discretionary SPDR (XLY) as traders sought defensive positioning.
A U.S. Court of Appeals ruled 7–4 that most of former President Trump’s global tariffs exceed executive authority and must be imposed by Congress. Market participants worry the government may need to repay billions in tariff revenues, a fiscal burden that has weighed on risk assets. President Trump labeled the decision “highly partisan” and plans to appeal to the Supreme Court, leaving tariff policy uncertainty in focus for traders.
Treasury yields on Wall Street climbed sharply on the back of fiscal concerns and potential tariff refunds. The 10-year note rose to 4.27%, while the 30-year yield topped 4.97%. Higher long-term rates create headwinds for equity valuations, particularly for growth and technology stocks that benefit most from a low-rate environment.
September has a reputation as the stock market’s worst month. Over the last five years, the S&P 500 has averaged a 4.2% decline in September, and it has fallen more than 2% on average over the past decade on Wall Street. This seasonal weakness often amplifies on the heels of a summer rally, contributing to the caution seen Tuesday.
“A 30-year Treasury of 5% is a headwind, no doubt about it,” said Ross Mayfield, investment strategist at Baird Private Wealth Management, highlighting stretched equity valuations. Sam Stovall of CFRA Research noted that years with 20 or more new all-time highs through August have historically ended with a pullback in September on Wall Street, reinforcing the seasonal caution among market participants.
All eyes now turn to Friday’s August jobs report, where expectations point to a gain of approximately 75,000 nonfarm payrolls. The data will be critical for gauging the Federal Reserve’s rate path ahead of its September 16–17 meeting. Kenyan and global traders alike will monitor U.S. economic releases, Fed commentary, and bond yields for fresh signals on monetary policy and market direction for Wall Street.
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