US stocks opened in decline this Tuesday, September 2, 2025, pressured by a federal court ruling that struck down most of Donald Trump’s tariffs and by weakness in major tech names such as Nvidia and Palantir. The Dow Jones futures fell 0.7%, the S&P 500 dropped 0.9%, and the Nasdaq-100 slipped 1.1% in premarket trading, extending the cautious tone from the Labor Day holiday week.
Tariffs ruling sparks uncertainty
Markets reacted to the news that a US federal appeals court declared most of Trump’s tariffs illegal, although the measures will remain in force until at least October 14. The ruling injected volatility into equities, with the CBOE Volatility Index (VIX) climbing, reflecting investor caution. Analysts highlighted that the decision adds legal and political uncertainty at a time when Wall Street is already bracing for key economic data this week, including the August jobs report.
Investors.com noted that this legal backdrop weighed particularly on cyclical and industrial stocks sensitive to trade tensions.
Tech stocks drag Nasdaq lower
The technology sector led the morning’s decline. Nvidia (NVDA) fell between 2.3% and 2.5% after issuing a revenue outlook that disappointed investors, while concerns about competition from Chinese players such as Alibaba intensified. Palantir (PLTR) dropped nearly 4%, moving closer to its 50-day moving average.
Meanwhile, some bright spots emerged: PepsiCo (PEP) surged 4.6% after Elliott Management disclosed a $4 billion stake and called for strategic changes. Biogen (BIIB) rose about 1% following FDA approval of a new Alzheimer’s treatment. Newmont (NEM) gained nearly 2% as gold prices advanced on safe-haven demand and expectations of Federal Reserve rate cuts.
Reuters reported that futures for the three main indexes stayed under pressure throughout the premarket session.
Corporate shake-ups and bankruptcies
Beyond tech, corporate news added to market volatility. Kraft Heinz (KHC) announced plans to split into two separate companies to unlock value. Nestlé replaced its CEO with Philipp Navratil, signaling a shift in strategic direction. And Spirit Airlines (SAVE) filed for Chapter 11 bankruptcy protection, though it will continue operating while restructuring.
According to Investopedia, these moves highlight how companies across sectors are adapting to shifting consumer demand and tighter financing conditions.
Macro outlook: Fed and jobs data in focus
Investors are closely monitoring the Federal Reserve, after recent tensions between President Trump and Fed governors raised doubts about central bank independence. Rising Treasury yields pressured equities, while gold continued to hit fresh highs.
Morgan Stanley strategist Mike Wilson told MarketWatch that the market has not fully priced in the potential positive impact of interest rate cuts, recommending that investors “buy the dip,” especially in small caps and AI-related stocks.
ETFs reflect market pressure
By midday trading in New York:
- SPDR S&P 500 ETF (SPY): down 0.63% at USD 645.05
- Invesco QQQ Trust (QQQ): down 1.21% at USD 570.40
These moves confirm the downward bias across broad US equity benchmarks.
Final insight
Wall Street opened the month of September under pressure, caught between political-legal turbulence and anticipation of crucial economic data. While the Nasdaq leads losses, analysts warn that volatility may persist until clarity emerges on tariffs and the Federal Reserve’s next steps.
Sources:Investors.com, Reuters, Barron’s, Investopedia, Wall Street Journal, MarketWatch
