The U.S. stock market started September with weak momentum as Dow, S&P 500 and Nasdaq futures fell in unison. Investors took profits after the summer, with tech giants like Nvidia and Palantir declining.
An appeals court ruling that Trump’s global tariffs were invalid also added to the uncertainty. While it would be seen as a positive if the Supreme Court rejects the IEEPA, the market faces short-term risks as the trade deal may need to be renegotiated.
In addition to trade issues, a surge in U.S. bond yields added pressure. The 10-year Treasury yield rose to 4.29% and the 30-year surpassed 4.98%, stoking concerns about the fiscal situation if tariff revenue were to be reimposed.
Historical data shows September to be the weakest month for the stock market, with the S&P 500 falling an average of 4.2% over the past five years. However, August performed well, indicating positive momentum. Investors' attention is now shifting to the August jobs report, which will influence the Federal Reserve's interest rate decision.
