Wall Street Wobbles Amid Tariff Tensions and Investor Uncertainty

This week, major U.S. stock indexes faced declines, as investors returned from the holiday weekend troubled by doubts over the legality of President Trump's tariffs and anticipated critical economic indicators. Investors' unease was further stoked by a U.S. appeals court's ruling against most tariffs, albeit permitting their persistence till mid-October.

On Tuesday, yields on longer-term U.S. Treasuries climbed, with the 30-year notes marking their highest levels in over a month, intensifying pressure on equities. Simultaneously, the CBOE Market Volatility index reached a notable high, reflecting increased market trepidation.

However, PepsiCo buoyed the consumer staples sector, surging 3.6% after Elliott Management declared a significant $4 billion stake. Meanwhile, tech stocks dragged down indexes, with giants like Nvidia, Apple, and Microsoft posting losses. Investors now focus on upcoming employment data, anticipating a likely Federal Reserve rate cut.

(With inputs from agencies.)