Wall Street ends lower as ruling on Trump tariffs raises worries
Wall Street started off September on a sharply lower note on Tuesday as investors weighed the legality of President Donald Trump's tariffs after a federal appeals court ruled most of his sweeping tariffs illegal.
A divided U.S. appeals court ruled on Friday that most of Trump's tariffs are illegal, but allowed for the levies to be in place until October 14. Trump on Tuesday afternoon said his administration will ask the Supreme Court for an expedited ruling on the tariffs.
The appeals court ruling rattled investors on Tuesday after the long Labor Day holiday weekend, with September traditionally a weak month for equities. But the major stock indexes ended off their worst levels of the day.
The Cboe Market Volatility index.
Data going back decades shows that, on average, September is the worst month for U.S. stocks, and some investors are bracing for another bumpy ride this year.
In addition, investors are anxious to see the August U.S. nonfarm payrolls report, due on Friday, and whether weak U.S. job growth continued for a fourth month in August.
According to preliminary data, the S&P 500 lost 45.31 points, or 0.70%, to end at 6,414.95 points, while the Nasdaq Composite lost 176.70 points, or 0.81%, to 21,278.86. The Dow Jones Industrial Average fell 256.02 points, or 0.56%, to 45,288.86.
U.S. rate futures widely expect the Federal Reserve to lower interest rates this month, pricing in a 92% chance of a 25-basis-point cut at the end of the two-day policy meeting on September 17, according to CME Group's FedWatch.
Source : Reuters
