Wall Street Falls, Concerns Over Tariffs & US Debt Rattled Markets

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Wall Street Falls, Concerns Over Tariffs & US Debt Rattled Markets/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street stocks tumbled Tuesday, with the S&P 500 down 1.2% in what could be its steepest loss in a month. Nvidia and Broadcom led declines as rising bond yields and concerns over U.S. debt rattled markets. Gold prices rose while investors sought safer ground.

A currency trader passes by screens showing the Korea Composite Stock Price Index (KOSPI), center left, and the foreign exchange rate between U.S. dollar and South Korean won, center, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Tuesday, Sept. 2, 2025. (AP Photo/Ahn Young-joon)

Wall Street Market Quick Looks

S&P 500 down 1.2%, worst in a month
Dow Jones down 498 points at open
Nasdaq fell 1.4%, led by tech selloff
Nvidia down 2.3%, Broadcom down 2.1%
10-year Treasury yield rises to 4.27%
Gold climbs 1% near record highs
Constellation Brands plunges 6.4% on weak beer sales
Kraft Heinz slips 1.4%, announces split into two firms
PepsiCo jumps 3.5% after Elliott Management push
European markets slump; Germany’s DAX down 2%

An electronic notice board shows the price of gold at a jewelry shop in Tokyo Monday, Sept. 1, 2025. (Kenichiro Kojima/Kyodo News via AP)

Wall Street Falls, Concerns Over U.S. Debt Rattled Markets

Deep Look

NEW YORK (AP) — U.S. stocks tumbled Tuesday, with all three major indexes slipping as tech giants and rising bond yields dragged the market lower.

The S&P 500 fell 1.2%, heading for its worst single-day performance in a month. The Dow Jones Industrial Average dropped 498 points (1.1%) and the Nasdaq composite fell 1.4%, led by losses in technology shares. Despite the decline, indexes remain near record highs.

Tech Sector Leads the Decline

Chipmakers that have powered the artificial intelligence boom were among the hardest hit.

Nvidia dropped 2.3%
Broadcom slid 2.1%

Investors worry valuations are overstretched after years of massive gains tied to AI demand.

Rising Yields Pressure Stocks

The 10-year Treasury yield climbed to 4.27%, up from 4.23% Friday. Rising yields make bonds more attractive relative to equities, particularly high-priced tech stocks.

Global yields are also climbing amid concerns about mounting government debt. In the U.S., yields have been further pressured by President Donald Trump’s criticism of the Federal Reserve for not cutting interest rates. Investors fear a weakened Fed could undermine inflation control.

Tariff Ruling Adds Uncertainty

Tuesday marked the first trading day after a federal appeals court ruled Trump exceeded authority in imposing sweeping global tariffs. The tariffs remain in place for now, creating uncertainty but also bringing in government revenue.

Safe Haven Gold Nears Record

Gold rose 1%, nearing record highs, as investors looked for safety amid equity and bond market volatility.

Corporate Movers

Constellation Brands plunged 6.4% after reporting slower demand for premium beers, especially among Hispanic customers.
Kraft Heinz slipped 1.4%, announcing a split into two companies:
- One for shelf-stable meals and condiments (Heinz, Kraft Mac & Cheese, Philadelphia).
- Another for Oscar Mayer, Kraft Singles, and Lunchables.
PepsiCo gained 3.5% after Elliott Management urged strategic changes to reaccelerate growth.