Federal court rules Trump tariffs illegal

The New York Stock Exchange opened sharply lower on 2 September as investors weighed the legality of Donald Trump’s tariffs – a federal appeals court has ruled most of them illegal.

The S&P 500 fell 44.72 points, or 0.69%, to 6,415.54. The Nasdaq Composite dropped 175.92 points, or 0.82%, to 21,279.63. The Dow Jones Industrial Average lost 249.07 points, or 0.55%, closing at 45,295.81.

Mike Mussio, president of FBB Capital Partner, commented on the market situation:
“After a strong August, the markets are starting September lower. Court rulings indicate that Trump administration tariffs are illegal, which is causing some market volatility. Investors are also awaiting the jobs report later this week and the upcoming Federal Reserve meeting, which provide new data points.”

Mussio added that tariff uncertainty has pushed long-term bonds higher. The 30-year bond is now around 5%. Investors are favouring shorter-term bonds to reduce risk amid ongoing uncertainty.

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