The Mid-Day Buzz

Sophia Reyes · September 2, 2025 11:52 AM

September 2^nd, 2025

Stocks Open September Lower Amid Tariff Uncertainty

Equity markets began the month on a weak note Tuesday, pressured by a U.S. appeals court ruling that struck down most tariffs imposed earlier this year. Energy is among the few sectors advancing, while technology and industrials are leading the declines.

The Dow Jones Industrial Average (^DJI) fell over 400 points, while the S&P 500 (^GSPC) dropped around 1.2%. The tech-heavy Nasdaq Composite (^IXIC) tumbled roughly 1.5%, marking a sour start to September after another winning month for major Wall Street stock indexes.

Overseas, Asian markets ended mixed following the weekend’s Shanghai Cooperation Organization summit, which included leaders from China, India, and Russia. European markets traded lower after Eurozone harmonized CPI rose to 2.1% year-over-year in August, edging above expectations for 2.0%.

Nvidia (NVDA), the industry’s AI bellwether, slid more than 3% on Friday and extended losses this morning, pressured by those earnings misses and a Wall Street Journal report highlighting Alibaba’s (BABA) development of a new AI chip.

Today’s market softness may also reflect investor caution ahead of Friday’s August nonfarm payrolls report, with consensus calling for just 78,000 new jobs—a sign of continued labor-market cooling. In the meantime, fresh U.S. manufacturing data will provide another gauge of economic momentum.

Economic Takeaways:

• In a major legal development, the U.S. Court of Appeals for the Federal Circuit ruled that most tariffs enacted earlier this year exceeded presidential authority under the International Emergency Economic Powers Act of 1977. The decision is set to take effect in October, giving the administration time to appeal to the U.S. Supreme Court. The ruling does not affect tariffs on foreign steel, aluminum, and autos, which were imposed separately under national security grounds after Commerce Department investigations.
• The U.S. dollar is strengthening against major global currencies.
• Treasury yields rose, with the 30-year jumping 6 basis points to trade around 4.97%, eyeing the key 5% level for the first time since July. The benchmark 10-year yield rose to near 4.3%.
• U.S. liquefied natural gas (LNG) exports surged to a record 9.33 million metric tons in August, as facilities came out of scheduled maintenance and Venture Global’s Plaquemines plant ramped up production, according to preliminary data from financial firm LSEG. The figure surpasses the previous monthly high of 9.25 million tons set in April and exceeds July’s exports of 9.1 million tons, marking another milestone for U.S. LNG shipments.
• Gold (GC=F) topped the all-time highs seen earlier this spring, trading near $3,600 an ounce on expectations the Fed will cut rates this month after Chair Jerome Powell signaled openness to a move.
• WTI crude oil is higher as investors weigh risks to Russian supply amid escalating Ukrainian drone strikes on energy infrastructure. Crude oil advanced 2.3% early Tuesday on concerns tied to the war in Ukraine and ahead of this weekend’s OPEC meeting, where analysts expect no production changes, according to CNBC.
• The U.S. manufacturing sector delivered encouraging signs in August. The final S&P Global Manufacturing PMI rose to 53.0 from 49.8, moving back into expansion territory thanks to stronger production and new orders. However, tariffs continue to drive higher input costs.
• The ISM Manufacturing PMI also improved, climbing to 48.7 from July’s 46.8, though it fell short of expectations for 49.2.
• Markets are currently 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.

U.S. Manufacturing Shrinks for Sixth Consecutive Month in August

The U.S. manufacturing sector remained in contraction last month, extending a difficult run through 2024.

The Institute for Supply Management reported Tuesday that its manufacturing PMI rose slightly to 48.7 in August from 48.0 in July, but still fell short of Bloomberg’s consensus estimate of 48.9. Any reading below 50 signals a contraction.

August marked the sixth consecutive month of shrinking activity for U.S. manufacturers, underscoring persistent challenges across the sector despite the modest month-over-month improvement.

Trump Tariffs in Legal Limbo as President Slams India Trade

A court struck down most of Trump’s global tariffs, though they remain in effect during appeals. Treasury Secretary Bessent expects the Supreme Court to uphold them. Trump also criticized U.S.-India trade as one-sided, while Brazil and Mexico respond with retaliatory measures.

On the Move

• Nvidia (NVDA) and Palantir (PLTR) fell early Tuesday as risk-off sentiment carried over from last week; Nvidia dropped 2.4% and is now nearly 8% below recent all-time highs after earnings that met expectations but offered little upside, while Palantir slid 3.5% and is down almost 18% from last month’s peak.
• Bitcoin futures (/BTC) fell nearly 4% Friday and ended August down 7.6% despite hitting a record high on August 14, though futures rebounded slightly in early trading today; other cryptocurrencies recently gained versus bitcoin, though it’s unclear if that trend will last, while crypto-related stocks were mixed with MicroStrategy (MSTR) and Coinbase (COIN) each off 1% Friday and Circle Internet Group (CRCL) posting a small gain.
• Signet Jewelers (SIG) rose 3.4% after reporting solid earnings and raising its full-year guidance.
• Meta Platforms (META) slipped 1.7% after Reuters reported the company removed several celebrity AI chatbots tied to unauthorized use of voices and images.
• Block (XYZ) declined 3.1% after BNP Paribas downgraded the stock to Hold from Buy.
• Tesla (TSLA) fell 2% before the open after Reuters reported August sales in China dropped 4%.
• PepsiCo (PEP) jumped nearly 5% after the Wall Street Journal reported Elliott Investment Management built a roughly $4 billion stake in the company.
• Newmont (NMT) climbed 1% as gold gained support from global uncertainty and expectations for rate cuts.
• Marvell Technology (MRVL) dropped double digits Friday and another 2.6% Tuesday after data center revenue rose 69% but fell short of analyst expectations; earnings and guidance were roughly in line, but shares are now down about 30% year-to-date.
• Dell Technologies (DELL) lost nearly 9% Friday despite beating estimates and raising full-year guidance, as Q3 earnings guidance missed consensus even with strong AI server sales.
• The Russell 2000® Index (RUT) outperformed in August with a nearly 7% gain, supported by growing odds of rate cuts that fueled momentum in smaller-cap stocks.

What’s Ahead

Earnings from Salesforce (CRM) on Wednesday and Broadcom (AVGO) on Thursday are set to keep the tech sector in the spotlight after a recent stumble. Broadcom’s report could offer fresh insight into AI demand, following Dell (DELL) and Marvell (MRVL) results last week that rattled investors.

Investors are also watching Washington, where a court hearing on whether Trump can fire Fed Governor Lisa Cook ended without a ruling, even as he seeks to reshape the Board of Governors.