U.S. stocks closed lower on Tuesday, as investors weighed fresh trade developments and rising bond yields at the start of what is historically a tough month for equities. The Dow Jones Industrial Average lost 249 points, or 0.55%, to finish at 45,295. The S&P 500 fell 0.69% to 6,415, and the Nasdaq Composite dropped 0.82% to 21,279.
The pullback comes as traders locked in profits after a strong summer rally. Heavyweights in the tech sector were among the biggest drags. Nvidia fell close to 2%, while Amazon and Apple each slipped about 1%.
Trade ruling and political fallout
Markets are also digesting Friday’s ruling by a federal appeals court that most of Donald Trump’s global tariffs were illegal. In a 7–4 decision, judges found that only Congress can impose such sweeping levies. Trump blasted the ruling as “highly partisan” and vowed to appeal to the Supreme Court. The decision raises the prospect of the U.S. refunding billions in tariff revenues, a potential strain on federal finances that has bond investors nervous.
Yields push higher
Treasury yields climbed sharply. The 10-year note rose to 4.27%, while the 30-year topped 4.97%. Analysts say the near-5% level on long bonds presents a significant headwind for equities trading at elevated valuations.
September’s reputation and upcoming catalysts
History also weighs on sentiment. Over the past five years, the S&P 500 has averaged a 4.2% decline in September. Even in years when the index posted 20 or more record highs through August, September has typically delivered losses.
Investors are now looking ahead to Friday’s August jobs report, seen as crucial for the Federal Reserve’s mid-month rate decision.
Australian market
Australian shares are set to follow Wall Street lower, with SPI futures down 37 points, or 0.4%, to 8,841. The Australian dollar eased 0.5% to 65.17 U.S. cents.
Investors will watch today’s release of second-quarter GDP figures at 11.30am, forecast to show a 0.5% quarterly gain. Later, Reserve Bank governor Michele Bullock speaks in Western Australia, while in the U.S., JOLTS job openings data is due overnight.
