Updated 2 min read
US stocks sank on Tuesday to start what is historically the worst trading month of the year, as Wall Street looked ahead to a crucial monthly jobs update this week that will shape expectations for interest-rate cuts.
The major indexes pared initial losses. The Dow Jones Industrial Average (^DJI) fell 0.6%, while the S&P 500 (^GSPC) dropped nearly 1%. The tech-focused Nasdaq Composite (^IXIC) also tumbled roughly 1%, marking a sour start to September after another winning month for major Wall Street stock indexes.
Treasury yields rose, with the 30-year (^TYX) jumping to near 4.96%, eyeing the key 5% level for the first time since July. The benchmark 10-year (^TNX) yield rose to near 4.3%.
Alphabet (GOOGL, GOOG) and Amazon (AMZN) led declines in the “Magnificent Seven” Big Tech stocks, both down over 2%.
Wall Street’s open to the holiday-shortened trading week — after Monday’s closure for the Labor Day holiday — comes ahead of a potentially tumultuous month, with legal drama around President Trump’s tariffs and concerns over Federal Reserve independence in high focus.
Gold (GC=F) surged to above $3,500 an ounce on Tuesday to eclipse April’s all-time high at one point. The latest run has been fueled by expectations that the Fed will lower interest rates this month, after Chair Jerome Powell opened the door to a reduction.
Those rate-cut bets face a key test in Friday’s jobs report for August — in keen focus, after disappointing inflation data dented stocks last week. Readings on job openings and private payrolls precede the crucial report, while an update on US manufacturing on Tuesday will shed light on the economy.
Markets are pricing in roughly 90% odds of a 25 basis point rate cut in September, but this week’s data could help make the case for deeper easing.
Meanwhile, investors are watching developments in Washington that could test the Fed’s independence. A court hearing last week on whether Trump can fire Fed Governor Lisa Cook ended without a ruling as the president continues to make attempts to stack the Fed’s Board of Governors in his favor.
The first market moves in September also follow a potentially major legal blow to Trump’s trade agenda. A federal appeals court ruled Friday that the bulk of Trump’s sweeping global tariffs were unconstitutional. Trump blasted the decision as “highly partisan” and vowed to take the case to the Supreme Court.
LIVE 13 updates
-
CoreWeave tumbles nearly 8%
AI data center operator and cloud provider CoreWeave (CRWV) saw shares drop 7.8% Tuesday morning.
CoreWeave shares are still up 135% since the company’s IPO in March, but the stock is down roughly 49% since its high above $183 in late June, putting its $9 billion all-stock deal to acquire Core Scientific (CORZ) at risk.
CoreWeave stock had plungeded in early August after the company reported a disappointing quarterly outlook for its operating income and fears of an AI bubble tested the tech trade.
Adding pressure to the stock, insiders including CEO Mike Intrator made moves to sell off shares last week, according to SEC filings.
-
Amazon leads Mag 7 down amid market sell-off
Amazon (AMZN) led a decline in the “Magnificent Seven” Big Tech stocks on Tuesday morning.
Shares of the cloud and e-commerce giant were down 2.2%, while Alphabet (GOOGL, GOOG) stock dropped over 2.1%. AI chipmaker Nvidia (NVDA) pared earlier losses to fall roughly 1.3% Tuesday morning after leading the Mag 7 down in premarket trading.
Overall, tech led broader losses in stocks Tuesday, with the Nasdaq down 1.3% shortly after the market open.
-
Stocks tumble at the open
US stocks sank on Tuesday to start September, which is historically the worst trading month of the year.
The Dow Jones Industrial Average (^DJI) fell roughly 1%, while the S&P 500 (^GSPC) dropped 1.3%. The Nasdaq Composite (^IXIC) plunged 1.8%, with Nvidia leading losses among the “Magnificent Seven” Big Tech stocks.
The sour start to September comes after a another winning month for major Wall Street stock indexes.
-
Natural gas prices fall 3% after Russia announces major pipeline deal with China
Natural gas futures fell by more than 3% early Tuesday after Russia said it signed a major agreement for a natural gas pipeline with China that will more closely tie the two countries’ energy industries together.
Russia’s state-owned Gazprom announced Tuesday morning in comments from top executive Alexei Miller that the corporation, among the largest energy players in Russia, signed a legally-binding agreement with Beijing to build the long-delayed Power of Sibera 2 pipeline that will move natural gas from the Siberian region of Russia to northern China, via Mongolia.
Beijing has not yet confirmed details of the announcement.
Power of Sibera 2 is projected to allow Gazprom to ship as much as 50 billion cubic meters of gas annually for 30 years, Miller said, according to Bloomberg.
The project has long been eyed by Russian president Vladimir Putin as a key step toward backfilling funds that once came from Europe before the continent drastically reduced its purchases of Russian gas in the wake of its invasion of Ukraine.
Russia accounted for 45% of Europe’s gas imports in 2021; today, it accounts for just 18%, according to Reuters.
Prior to Russia’s invasion, Europe had been buying as much as 150 billion cubic meters per year of Russian gas. The EU is currently considering moves that would ban Russian gas under from short-term contracts starting in June 2026 at the latest, and ban shipments under existing long-term deals by the end of 2027.
It is unclear how much China would pay for the gas pumped in via the new pipeline, but it will be a lower price than what Europe pays, Miller said.
The fall in gas prices adds to a drop of more than 26% since the start of the year as a combination of weak demand and quickly increasing stores have pushed prices consistently downward.
-
Nestlé stock dips after CEO dismissed
Nestlé Swiss-listed stock dipped just over 1% on Tuesday following the dismissal of CEO Laurent Freixe. He was fired after an investigation into an “undisclosed romantic relationship with a direct subordinate,” the food giant said.
Nestlé chairman Paul Bulcke said in a statement: “This was a necessary decision. Nestlé’s values and governance are strong foundations of our company.”
Replacing Freixe is Philipp Navratil, who was serving as CEO of Nestlé Nespresso.
Shares of the Swiss food and beverage company were down 18% over the past year heading into Tuesday’s trading session.
-
Nio stock rises on better-than-expected adjusted net loss, Q3 delivery outlook
US-listed shares of Nio (NIO) rose 1.6% in premarket trading on Tuesday after the Chinese electric vehicle maker reduced its adjusted net loss amid fierce competition in China, where EV makers have been slashing prices.
The company reported an adjusted net loss of 4.12 billion yuan ($576.1 million), or a loss of 1.85 yuan ($0.25) per share, compared to expectations for a loss of 4.26 billion yuan ($597 million), or a 2.25 yuan ($0.32) loss per share.
The company delivered 72,056 vehicles in the second quarter, compared to 57,373 vehicles in the same quarter a year ago. It expects to deliver 89,000 vehicles in the third quarter, which would represent a record number of deliveries for the company.
Other US shares of Chinese EV makers were down in premarket trading, including BYD (BYDDY) and XPeng (XPEV).
-
Pepsi stock gains 5% after activist investor takes $4 billion stake
PepsiCo (PEP) stock jumped 5% in premarket trading on Tuesday after the Wall Street Journal reported that activist investor Elliott Investment Management built a $4 billion stake in the company.
According to the report, Elliott plans to use its position, which makes it one of Pepsi’s top five shareholders excluding index funds, to angle for changes at the company and boost the share price.
Pepsi shares have underperformed this year as consumers drink less soda and eat fewer snacks, and as scrutiny over ingredients increases. Year to date, the stock is down 2%, compared to a nearly 10% rise in the S&P 500.
Pepsi has aimed to reverse some of these trends by leaning into other categories, such as energy drinks. Last week, the company announced it boosted its stake in energy drink maker Celsius in a $585 million deal.
-
Kraft Heinz to split into two companies in bid to revive growth
Kraft Heinz (KHC) is splitting into two companies a decade after a massive merger created one of the biggest food giants in the world.
Its stock ticked up in premarket trading on Tuesday, as the company confirmed The Wall Street Journal’s report last week that it was closing in on a break-up. Its share price has lagged this year, down about 9%, as its core products struggled.
Reuters reports:
-
Premarket trending tickers: Nvidia, Amazon and Newmont
Here’s a look at some of the top stocks trending in premarket trading:
Nvidia (NVDA) stock slid 2% premarket on Tuesday after dropping more than 3% Friday. The AI chip maker’s projected $54 billion Q3 revenue disappointed investors, sparking concerns about slowing AI spending.
Amazon.com, Inc. (AMZN) stock fell 1% before the bell on Tuesday following the news that the tech giant’s sign-ups in the US failed to meet last year’s total and even the company’s own target, according to internal company data reviewed by Reuters.
Newmont (NEM) shares rose almost 2% on Tuesday as gold (GC=F) hit a record high, fuled by bets the Fed will cut rates later this month.
-
Good morning. Here’s what’s happening today.
-
Why hedge funds are starting September still cautious about US stocks
After becoming net sellers of US stocks in August, hedge funds remain hesitant about buying as September trading kicks off, Reuters reports.
The month has often been a downbeat one for markets. History looks set to repeat itself, even with a potential US interest-rate cut on the horizon.
Seasonal red flags, market fragility, a China buying spree, and a potential vicious circle of selling lie behind hedge funds’ reluctance to join the recent rally, Wall Street sources say.
Reuters reports:
-
August jobs report to land amid Fed uncertainty: What to watch this week
This week brings just four days of trading and a crucial nonfarm-payrolls report — the first since July’s dramatic revisions and an abrupt change in BLS leadership surprised investors.
The August jobs report’s importance for investors is downstream of its importance for the Federal Reserve, note Yahoo Finance’s Jake Conley and Myles Udland.
They report:
-
Gold pushes past record high of $3500, buoyed by rate-cut speculation
Bloomberg reports:
