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News Topical, Digital Desk : The US stock market witnessed a decline at the beginning of the week on Tuesday. This decline came at a time when investors are keeping an eye on the August job data coming on Friday, which will affect the expectations of interest rate cuts. The major index here, the Dow Jones, was seen trading with a decline of about 1.2% i.e. more than 500 points. At the same time, the S&P500 index was down 1.3% and the tech stock index i.e. Nasdaq was seen trading with a decline of 1.8%.
Before this, a decline was also seen in US futures. Dow Jones futures were seen trading down by about 550 points. The US market is functioning for the first time today after the Labor Day holiday. The US market had performed well last month, but now uncertainty is increasing in the market.
Treasury yield jump
The 30-year Treasury yield reached close to 4.97%. For the first time since July, it is close to the 5% level. The 10-year Treasury yield also reached close to 4.3%.
Shares of big tech companies fell
Nvidia shares fell 2.5%. While Alphabet, Amazon and Meta shares were down more than 2%. Gold price jump The price of gold rose above $3,500 an ounce on Tuesday, surpassing the April peak. This jump came after Federal Reserve Chairman Jerome Powell hinted at a rate cut. Investors are hoping that interest rates will be reduced in September. Eye on job data The August job data coming on Friday will be important for interest rate cuts this month. Last week, disappointing inflation data affected the market. Before this, focus will also be on job opportunities and private payroll data. The update on US manufacturing on Tuesday will further clarify the state of the economy. The market is predicting a 90% probability that there will be a rate cut of 25 basis points in September, but this week's data can form the basis for a deeper cut. Trump's tariff policy and Fed's independence Investors are also keeping an eye on developments in Washington, where questions are being raised on the independence of the Federal Reserve. In a court hearing last week, no decision was taken on President Trump's attempt to remove Fed Governor Lisa Cook. Trump is trying to appoint people of his favor in the Fed's board. Apart from this, Trump's global tariff policy has suffered a major setback. A federal appeals court ruled on Friday that most of Trump's global tariffs are unconstitutional. Trump termed it "highly partisan" and talked about going to the Supreme Court.
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