Wall Street Stumbles as Tariff Legality Looms in September

Wall Street stumbled into September with a notable decline amid investor concerns over the legality of President Donald Trump's tariffs. A divided federal appeals court deemed most of the sweeping tariffs illegal, although they remain effective until October 14, prompting the administration to seek expedited Supreme Court review.

Investor anxiety was palpable as the ruling added to September's traditionally weak market performance. Following the holiday weekend, the Cboe Market Volatility index climbed, reflecting uncertainty. Experts like Oliver Pursche from Wealthspire Advisors suggested it is premature to call this a significant correction, noting September's historic volatility.

With U.S. stocks traditionally performing poorly in September, investors now await the August nonfarm payrolls report and any potential Federal Reserve action on interest rates. The day's trading saw losses across major indexes, and sector-specific movements included declines in real estate and gains for PepsiCo following activist investor developments.

(With inputs from agencies.)