Dow Jones Futures Slip as Treasury Yields Rise Amid Tariff and Fed Uncertainty

New York, September 2, 2025 - Dow Jones Industrial Average futures edged lower Tuesday, with contracts for the index falling 0.6% as investors returned from the Labor Day holiday and weighed looming economic headwinds.

Futures for the S&P 500 and Nasdaq 100 also moved into negative territory, slipping 0.7% and 0.9%, respectively, signaling a cautious start to September trading.

Market participants cited a surge in U.S. Treasury yields as a key driver of the downturn. The 30-year yield climbed toward the critical 5% threshold for the first time since July, while the benchmark 10-year note approached 4.3%, exerting additional pressure on equities.

Investor attention is firmly fixed on this week’s August nonfarm payrolls report, due Friday, which could reshape expectations for a potential Federal Reserve rate cut later this month. According to CME Group’s FedWatch tool, markets currently assign a roughly 92% probability to a 25-basis-point reduction at the Fed’s September meeting.

Uncertainty over the legality of existing trade tariffs added to the unease. Last Friday, a federal appeals court declared most of former President Trump’s global import levies illegal, creating the prospect of a protracted legal battle even as the tariffs remain in effect until further notice.

Against this backdrop, gold prices rallied above $3,500 an ounce, reflecting haven demand amid speculation over monetary easing and geopolitical risks. The Labor Day-shortened trading week and the traditionally volatile month of September set the stage for what many strategists anticipate will be a turbulent session on Wall Street.