U.S. STOCKS SLIDE AS TREASURY YIELDS RISE, TECH SHARES WEIGH

New York, Sept. 2 - U.S. equity markets opened September on a downbeat note Tuesday, with investors bracing for fresh data on jobs and legal fallout over federal tariffs.

The Dow Jones Industrial Average fell 1.2%, giving back 500 points, while the S&P 500 declined 1.3% and the Nasdaq Composite tumbled 1.8% at the open. Treasury yields climbed sharply, with the 30-year note approaching 4.97% and the 10-year yield rising to about 4.3%, pressuring stocks broadly.

Technology shares underperformed, led by Nvidia slipping 2.5% early in the session. Amazon, Alphabet and Meta each dropped more than 2%, as investors weighed concerns over stretched AI valuations and the outlook for rate cuts.

Treasury market moves reflected renewed uncertainty about the Federal Reserve’s next policy steps. Fed Chair Jerome Powell will face heightened scrutiny when August’s employment report is released Friday, a key gauge for whether the central bank will deliver rate reductions this month.

Political and legal developments added to market jitters. A federal appeals court last week ruled most of President Trump’s global tariffs unconstitutional, though the levies remain in place pending appeal, fueling debate over trade policy and Fed independence.

Safe-haven assets saw gains: gold topped $3,500 per ounce, surpassing its April record high, on bets that easing monetary policy lies ahead.

Investors now await further economic data this week-including U.S. job openings, private payrolls and manufacturing figures-to gauge the pace of cooling in the labor market and confirm expectations for Fed action.