Tuesday’s session ushered in September’s signature volatility, as yields marched higher, legal fights over tariffs escalated, and key sectors repositioned in anticipation of looming Fed decisions and a pivotal month for economic policy and earnings guidance. Yes indeed, Wall Street started September on a cautious note, with the S&P 500 that dropped 0.69% to close near 6,415.54—its sharpest loss since early August. The Dow Jones Industrial Average fell 055%, finishing at 45,295.81 after shedding 249 points, while the Nasdaq Composite gave back 0.82%, reflecting concentrated weakness in technology shares. The Russell 2000 slipped nearly 0.60%. Overall all as fear rose today, so did the markets ‘fear guage’ or The CBOE Volatility Index, which jumped 6.51% to close at $17.17.
Macroeconomic Reports
Fresh data painted a mixed macroeconomic landscape. The August ISM Manufacturing PMI registered at 48.7, slightly improved from July but remaining in contraction territory for the sixth straight month. The production sub-index fell to 47.8, pointing to persistent manufacturing softness. Meanwhile, the July JOLTS report revealed 7.4 million job openings, down from 7.6 million, reinforcing labor market cooling. Industrial production edged up 1.43% year-on-year—but below long-term trend—indicating lingering headwinds in U.S. output. Fed watchers interpreted this as further evidence for possible easing at the mid-September FOMC meeting.
Federal Reserve, Yield Curve & Interest Rates
Bond yields spiked as investors weighed inflation prospects and mounting government debt. The 2-year Treasury yield finished at 3.645% and the 10-year at 4.63%, flattening the curve. The FOMC issued no new statements, with market anticipation focused on the September 16-17 meeting and the prospects for a 50–75 bps rate cut this fall.
Tariff and Trade News
Markets followed the volatile legal saga surrounding President Trump’s tariffs after an appellate court partially overturned a lower court’s earlier block. The administration is now seeking expedited Supreme Court review, while the existing uncertainties cause further volatility for sectors exposed to global trade. This legal churn dampens business investment and complicates global supply chains as stakeholders await a final decision.
Corporate Headlines & Share Price Movements
NVIDIA (NVDA) dropped nearly 1.91% after pushing back against media claims that its AI chips were “sold out,” leading the downturn among tech’s “Magnificent Seven.”
Tesla (TSLA) closed 1.35% lower at $329.36, as the EV sector suffered from sector rotation and competitive headwinds.
Meta Platforms fell .49% to $735.11 as investors rotated into communication services.
McDonald’s moved up 1.28% to $315.76, its resilience underpinned by consumer sector rotation and ongoing brand momentum.
Intel (INTC) fell .57% to $24.21.
MongoDB (MDB) rose .85% to $318.29, building on the recent jump after a sharp full-year guidance hike.
Oracle (ORCL) rose .85% to $218.29 as sentiment improved in enterprise tech and cloud software.
Palantir Technologies (PLTR) edged up 0.24% to $157.09, steadying even as broader AI and analytics leaders saw heightened volatility.
Rio Tinto Group (RIO) fell 1.32% to $61.89, with support from firmer commodity pricing and relief over no new mining tariffs.
IPO Activity (NYSE/Nasdaq)
IPO activity surged post-Labor Day with the most anticipated filing from Klarna (KLAR), planning a $1.24 billion offering.
Commodities & Cryptocurrencies Closing Prices
- Gold: Closed at $3,600.80/oz. The SPDR Gold Shares ETF (GLD) rose 2,36% to $325.59.
- Silver: Ended at $41.74/oz. The iShares Silver trust (SLV) rose +2.65% to $37.15.
- Oil (WTI): Finished at $65.62/barrel.
- Bitcoin: $112,035.
