The session results indicate that the Dow Jones Industrial Average dropped 0.55%, the Nasdaq fell 0.82%, and the broad S&P 500 declined 0.69%.
The stock market “dipped back into the general confusion” surrounding U.S. trade policy, commented Art Hogan of B. Riley Wealth Management.
In a significant defeat for Donald Trump, a federal appeals court ruled on Friday that a large portion of the tariffs he imposed were illegal, excluding sectors such as automotive, steel, aluminum, and copper.
Trump has responded by announcing an appeal to the Supreme Court.
This “obstacle” undermined stock indices “after four consecutive months of positive returns,” he added.
The return of uncertainty and concerns about public finances were also reflected in the U.S. debt market.
The yield on 10-year federal bonds exceeded 4.30% today, after closing at 4.24% the day before, evolving to 4.27% around 21:20 Lisbon time.
The more a bond is sought after, the lower its yield falls. Conversely, when a state’s debt is considered riskier, its rate rises.
The indicator related to industrial activity in the U.S. showed continued decline in August, for the sixth consecutive month, according to the ISM index.
Several U.S. employment reports will be released throughout the week.
This information “will certainly be considered by the Federal Reserve when making the decision” regarding a reduction in its benchmark interest rate at the meeting scheduled for the end of September, Hogan noted.
The central bank’s president, Jerome Powell, has recently expressed concerns about the labor market’s trajectory.
Among the listed companies, analysts at Briefing.com highlighted “persistent weakness” among the mega-cap stocks.
The so-called Seven Magnificent, a nickname for the leading conglomerates in the technology sector, all closed lower, including Nvidia (-1.97%), Microsoft (-0.31%), and Meta (-0.49%).
