Stock Market Today: September Starts Weak as All Major Indexes Slip
U.S. markets began September on a weak note, with all major indexes declining due to seasonal weakness and rising yields. The S&P 500 fell 0.69%, the Nasdaq Composite dropped 0.82%, and the Dow Jones Industrial Average decreased by 0.55%. Analysts note the "September Effect," where the S&P typically declines 0.8% this month. Political tensions and concerns over government debt add to the cautious sentiment, as traders await key economic reports that may impact Federal Reserve policy.
Data by YCharts
U.S. markets opened September on a defensive note, as seasonal weakness and rising yields weighed on stocks across all three benchmarks.
The S&P 500 (^GSPC -0.69%) lost 0.69% to 6,415.54, while the Nasdaq Composite (^IXIC -0.82%) slid 0.82% to 21,279.63--its steeper drop highlighting tech-sector vulnerability amid elevated bond yields and renewed worries over inflation and tariff uncertainty. The Dow Jones Industrial Average (^DJI -0.55%) also slipped, down 0.55% to 45,295.81, underscoring a broad risk-off tone as investors reposition ahead of what is historically the weakest month for equities.
Seasonal headwinds are already in motion: analysts reference the long‑standing "September Effect," where the S&P often declines an average of 0.8% during the month. This year, political tensions over Fed independence and concerns about government debt only amplify the downside bias.
Traders are turning their attention to upcoming economic reports--including jobs data and inflation updates--that could influence the Federal Reserve's next policy steps. Seasonal headwinds combined with persistent macro uncertainty leave September starting on a cautious note.
Market data sourced from Google Finance on Tuesday, Sept. 2, 2025.
