Wall Street receded before the tariff uncertainty and waiting for economic data in the US

The New York Stock Exchange ended with red numbers this Tuesdayday when the operators returned to the activity, in a week abbreviated by the Labor Day holiday, but not exempt from potentially important events.

In this context, the Dow Jones index of industrialists dropped 0.55% to 45,295.69 points; The S&P500 lost 0.71% to 6,414.68 points and the Nasdaq Composite depreciated 0.82% to 21,279.63 points.

The main stock market indices of Wall Street They closed negative the last stock market on Friday, August 29, but not the month, where they ended on positive terrain.

Donald Trump vs the Court of Appeals

The operators analyzed at the end of last week a failure of the Appeals Court of the Federal Circuit of the USAwhich declared that The majority of President Donald Trump’s taxes are illegal and that only Congress has the authority to approve them. The president criticized the decision and said he will appeal to the Supreme Court.

Trump’s officials have long anticipated that the High Court would have to resolve the matter. As reported, the government is confident that tariffs, and the president’s pressure to exercise their authority to promulgate them, will finally have the support of the conservative majority of the court.

In a note to their clients, the analysts of Vital Knowledge affirmed that the decision of the Court of Appeals is, in the best, neutral for the markets, and added that “It will not come to eliminate Trump import taxes, and it will simply generate more uncertainty for US companies, while the White House seeks a more solid legal framework for its severe commercial policy”.

Although a ruling of the Supreme Court against tariffs could reduce the possibility of economic disturbances related to these, this measure could generate greater uncertainty about recent trade agreements between the US and its partners, which might require renegotiation.

Indecision tarnishes the perspectives of interest rates

Trump’s tariffs entered into force in August, and countries face taxes between 10 % and 50 %. However, most of them are expected to run in charge of local importers, which could promote US inflation in the coming months. The uncertainty about interest rates also remained a point of discord for Wall Street.

The PCE data last week, the inflation indicator preferred by the Fed, showed that inflation increased slightly in July, as expected, which points to a greater stagnation of the deflationary trend observed at the beginning of the year. Persistent inflation could give the fed less impulse to cut the rates.

While the president Jerome Powellhe said in August that the Central Bank considers a rate cut in September, in the face of a possible cooling of the labor market, warned the risks derived from the persistent pressure on prices.

Even so, the markets considered a probability of approximately 91% that the Fed cut the rates in a quarter percentage point at its next meeting at the end of this month, according to the CME Fedwatch tool, a barometer of market expectations on possible changes in the objective rate of federal funds, while evaluating the possible movements of the Fed around the meetings of the meetings of the Federal Open Market Committee.

August employment data are crucial

Investors again focus on the economic calendar, which this week will be headed by the publication, on Friday, of the important monthly report of non -agricultural payroll.

Analysts have indicated that a weak or warm reading for August that would occur after unexpectedly weak performance in July and deep downward reviews of the previous two months, could consolidate the bets that the Federal Reserve (Fed) Interest rates will gradually reduce at its next monetary policy meeting, on September 16 and 17. Economists expect the US to have added 74,000 jobs, compared to July 73,000.

For their part, the markets will be attentive to other indicators, including that of the activity of the American manufacturing sector that will publish on Tuesday the Institute of Supply Management. It is expected that in the August measurement the profits are located at 49.0, compared to July 48.0, but below the 50 points, which indicate a contraction.

Wall Street outstanding actions

The actions of Hoth Therapeutics Inc They rose 10.3% after the biopharmaceutical company in clinical phase announced positive preclinical results, of its HT-KIT precision candidate, for the treatment of tumor reduction.

The actions of Coreweave 9.4%collapsed, since the company’s largest shareholder and its executives continued to sell shares after the expiration of the blocking period after the OPI.

The actions of Pharmaceuticals Inc They increased 18.5% after the announcement of a new collaboration in clinical trials and a supply agreement with PFIZER INC (+0.8%) to evaluate combined therapy for metastatic breast cancer

The actions of Arrowhead Pharmaceuticals Inc They rose 16.5% after the announcement of a global license agreement and collaboration with Novartis for their preclinical Sirna therapy aimed at Parkinson’s disease and other neurological conditions.

On the other hand, this week some results will be published, including those of software companies ZSCALER INC (-0.9%) and Salesforce Inc (-1.3%), the chip manufacturer for servers Broadcom inc (-0.3%) and the retailer DOLLAR TREE INC (+2%).