Dow Plunges 0.89% as Trade Policy Uncertainty and Rising Yields Drag Volume to 372nd Rank

On September 2, 2025, the Dow Jones Industrial Average (DOW) fell 0.89% with a trading volume of $0.30 billion, ranking 372nd in market activity. The decline was driven by heightened trade policy uncertainty, rising Treasury yields, and sector-specific developments impacting component stocks.

The Dow’s performance aligned with broader market weakness as the S&P 500 and Nasdaq Composite also declined. A federal appeals court ruling invalidated most of President Trump’s “reciprocal” tariffs, creating uncertainty ahead of the Supreme Court appeal. This legal challenge, combined with a potential shift in Fed monetary policy, pressured equity markets. The 10-year Treasury yield rose to 4.3%, exacerbating concerns about valuation pressures.

Key Dow components saw varied movements. Kraft Heinz (KHC) plunged 7% following its announcement to split into two entities, reversing a decade-old merger. The decision disappointed Warren Buffett, a major shareholder, and raised questions about capital allocation efficiency. Meanwhile, chipmaker Nvidia (NVDA) dropped 2%, dragging down tech-heavy indices, as it distanced itself from media claims of AI chip shortages. UBS analysts highlighted the sector’s volatility but suggested dips in semiconductors could present buying opportunities amid strong AI demand.

Gold prices surged to record highs on safe-haven demand, while oil and the dollar index rose, reflecting risk-off sentiment. The Dow’s underperformance was further compounded by a manufacturing contraction in August, marking six consecutive months of decline, and anticipation of the September jobs report, which could influence Fed rate-cut expectations. Market pricing indicated a 90% probability of a 25-basis-point cut in September.