The tech-heavy Nasdaq Composite fell by 0.8%. Stocks declined on Tuesday as September trading commenced, facing new uncertainty surrounding tariffs. The Dow Jones Industrial Average fell by 0.6%, and the S&P 500 experienced a decrease of 0.7%. All of the major indexes concluded the session significantly above their lowest points of the day. Stocks were recovering from a decline on Friday before yesterday’s Labor Day break, although major indexes achieved gains in August for the fourth consecutive month.

Investors are gearing up for multiple labor market reports, with the significant highlight being the release of the August jobs report this Friday. The Federal Reserve will pay close attention to the employment data as it deliberates on the possibility of cutting interest rates at its upcoming policy meeting in two weeks. Market participants are factoring in the possibility that the Fed will reduce its benchmark rate this month for the first time in 2025. On Friday, a federal appeals court determined that President Donald Trump exceeded his authority by implementing “reciprocal” tariffs on global trading partners. The tariffs will stay in place until mid-October as the Trump administration seeks to appeal the ruling to the Supreme Court, creating uncertainty regarding trade policy following a period of relative stability. Stocks of the leading global technology firms, which drove the decline on Friday, were predominantly down today. Chip giant and AI investor favorite Nvidia declined 2%, while Apple, Amazon, and Tesla were each down more than 1%. Microsoft, Alphabet, and Meta Platforms retreated less than 1%, while chipmaker Broadcom, which is due to report earnings later this week, closed slightly higher after spending most of the day in negative territory.

Chip stocks faced significant downward pressure. Arm Holdings experienced a decline of over 4%, while Lam Research and KLA Corp. each saw a decrease of approximately 3%. The PHLX Semiconductor Index finished the day down by 1%, having initially dropped by 3% at the start of trading. Kraft Heinz experienced a significant decline of 7%, positioning it as the top decliner in the S&P 500 following the announcement of its plan to split into two entities, reversing the merger of two major consumer brands from ten years prior. PepsiCo shares closed the day up 1%, having surged as much as 6% earlier in the session after reports emerged that activist investor Elliott Investment Management acquired a stake valued at approximately $4 billion in the beverages and snacks company. Gold prices reached an all-time high today as certain investors sought refuge in this traditional safe haven due to heightened stock market volatility and uncertainty surrounding tariffs. Gold futures recently increased by 2.4%, reaching approximately $3,600 an ounce, which positively impacted shares of Newmont Mining and Barrick Mining today.

West Texas Intermediate futures, the U.S. crude oil benchmark, increased by 2.5% to $65.60 per barrel, reaching their highest levels in a month. The yield on the 10-year Treasury, which influences borrowing costs across various loans, particularly mortgages, stood at 4.27% in late-afternoon trading, an increase from 4.23% at Friday’s close, amid renewed uncertainty regarding tariffs. The U.S. dollar index, reflecting the dollar’s performance against a selection of foreign currencies, increased by 0.6% to reach 98.33. Bitcoin reached $111,400, increasing from a low of approximately $107,500 earlier today. The digital currency has faced challenges since reaching an unprecedented peak exceeding $124,000 just under three weeks ago.