Dow closes down about 250 points to kick off September on tariff worries, rising bond yields

U.S. stocks closed lower on Tuesday, with investors weighing the latest developments on the trade front to kick off a seasonally poor month for equities. Rising yields also worried investors.

The Dow Jones Industrial Average ended down 249.07 points, or 0.55% to close at 45,295.81. The S&P 500 dropped 0.69% to settle at 6,415.54, while the Nasdaq Composite slid 0.82% to close at 21,279.63.

Investors took profits on bull market winners with the unofficial end of the summer season. Nvidia shares, for example, closed down about 2%, while other Big Tech names like Amazon and Apple shed around 1%.

The moves come after a federal appeals court on Friday ruled that most of Trump’s global tariffs are illegal. The U.S. Court of Appeals for the Federal Circuit determined in a 7-4 ruling that only Congress has the authority to apply sweeping levies. Trump called the decision “Highly Partisan” and has said that he will appeal the ruling to the U.S. Supreme Court.

Investors were also eying a surge in bond yields to start September. The 10-year Treasury yield jumped to 4.27%, while the 30-year yield topped 4.97%.