Market Jitters: US Stocks Slide on Tariff Uncertainty, Bond Yield Surge

U.S. stock futures are significantly lower this Tuesday, as investors grapple with new uncertainties surrounding trade tariffs and a sharp rise in bond yields, kicking off what is historically a challenging month for equities.

Dow Jones Industrial Average futures have fallen 265 points (0.6%), with S&P 500 futures down 0.8% and Nasdaq-100 futures losing 1%. This downturn sees investors taking profits, particularly in tech, with Nvidia shares off by 1.5% and Palantir shedding 2%.

Adding to the market’s unease, the 10-year Treasury yield jumped to 4.29% and the 30-year yield neared 4.98%. These moves follow a federal appeals court ruling last Friday that declared most of former President Donald Trump’s global tariffs illegal, asserting that only Congress holds the authority for such sweeping levies. Trump has labeled the decision “Highly Partisan” and vowed to appeal to the U.S. Supreme Court.

While a Supreme Court decision against broad tariff use could reduce future escalation risks, experts like Aniket Shah of Jefferies note that short-term uncertainty could rise as existing trade agreements may require renegotiation. This, coupled with historical trends showing September as the worst month for equities, is weighing heavily on sentiment.

Further compounding investor concerns are questions surrounding the future independence of the Federal Reserve. A court hearing regarding efforts to prevent the ouster of central bank officials concluded Friday without a ruling. Meanwhile, Stephen Miran, a Trump nominee, is scheduled for his Senate Banking Committee hearing on September 4th.

Wall Street’s strong August, which saw the Dow advance over 3% and the S&P 500 rise nearly 2%, now faces a turbulent start to September. Traders are keenly awaiting Friday’s release of August’s jobs report, which will significantly influence the Federal Reserve’s upcoming interest rate decision mid-month.

阅读中文版 (Read Chinese Version)

Disclaimer: This content is aggregated from public sources online. Please verify information independently. If you believe your rights have been infringed, contact us for removal.