The three major averages closed out the first trading day of September in negative territory.

The Dow Jones Industrial Average dropped 249.07 points, or 0.55%, to finish at 45,295.81. The S&P 500 and the Nasdaq Composite also declined 0.69% and 0.82%, closing at 6,415.54 and 21,279.63, respectively.

— Sean Conlon

A stock market near all-time highs should not concern investors, according to UBS.

Even though September is regarded as a historically weak season for equity returns, UBS pointed out that corporate earnings remain strong and that the Federal Reserve's likely upcoming rate cutting cycle could be a catalyst for the market moving forward. Periods in which the Fed cuts interest rates while the economy is still growing have historically been linked with positive equity market returns, the firm said.

"While the S&P 500's forward price earnings ratio, at around 22 times, is at the upper end of historical ranges, this is supported by robust earnings growth," Ulrike Hoffmann-Burchardi, chief investment officer for the Americas and global head of equities at UBS Global Wealth Management, said in a note to clients.

"Record highs are also no reason for concern: Since 1960, the S&P 500 has generated around 12% returns in the year following an all-time high, and about 38% over the following three years. So, we recommend that investors who are under-allocated to equities consider phasing in and using market dips to add exposure to preferred areas," Hoffmann-Burchardi added, highlighting U.S. technology, health care, utilities and financials as attractive sectors.

— Pia Singh

Google parent Alphabet is missing out on a major monetization opportunity, according to D.A. Davidson analyst Gil Luria.

Luria said there appears to be significant interest from frontier artificial intelligence labs, such as xAI, to physically purchase TPUs, or Tensor Processing Units, should Google begin to sell them outside of its own internal configurations. Google TPUs are application-specific integrated circuits, or ASICs, designed for machine learning tasks and accessible through Google Cloud platforms.

"We continue to believe that Google's TPUs remain the best alternative to NVIDIA, with the gap between the two closing significantly over the past 9-12 months ... during this time, we've seen growing positive sentiment around TPUs," Luria wrote in a Tuesday note to clients. "Not only can Google's next-gen TPUs scale up to 42.5 Exaflops and is seeing a major jump in HBM capacity, but it's also significantly more cost-efficient, which we believe is driving interest from frontier labs."

"We strongly believe that a standalone TPU+DeepMind business could be valued at ~$900B, up from our initial analysis of this opportunity that marked it at $717B. Should this business ever be spun-off, investors would be getting a leading AI accelerator supplier and frontier AI lab in one, making it arguably one of Alphabet's most valuable businesses," Luria added.

To be sure, Luria said this opportunity remains under-valued as Google's breakup is still being considered. He reiterated his neutral rating on the stock and raised his price target to $190, which suggests downside from latest levels.

— Pia Singh

Gordon Haskett is a buyer of Costco after the big-box retailers recent pullback.

Analyst Chuck Grom reiterated his buy target and $1,200 price target on the stock, implying shares could jump more than 27% from Friday's closing level. Shares are down about 4.8% quarter to date, but still 2.8% higher this year.

Grom's bullish target comes ahead of Costco's sales update for the retail month of July, which is expected to release on Thursday. The analyst raised his same-store sales estimate to 7% from 4% ahead of the update.

"We once again expect Costco to report robust SSS in August as the company's higher-income customer cohort remains more resilient, while pricing investments and category/sourcing shifts prove a competitive advantage in maintaining a strong value proposition," Grom wrote in a note to clients. "With incremental tariff-driven cost increases on the come, we continue to view Costco as a market share gainer given its lower import exposure, higher-income customer base, and limited SKU assortment."

Costco shares were recently down about 0.1%. The company will report fourth-quarter earnings results on Sept. 25.

— Pia Singh

In a Tuesday note, Morgan Stanley reiterated its overweight rating on Voya Financial.

"Voya remains a favorite name given the company's near-term set-up, as the turnaround story moves along, and the long-term set-up, in which all three segments can grow profitably due to multi-faceted business drivers," wrote analyst Bob Jian Huang.

Shares of Voya have climbed 8% this year, but could add another 20% to Huang's $90 per share price target. The analyst added that the company's valuation still looks attractive here, especially given its long-term potential.

"As the turnaround story further plays out, we believe the valuation is overly depressed for now," Huang wrote. "Post 2Q25 results, we note that the company has made notable progress towards margin expansion in Employee Benefits and further build-out of the Retirement and Investment Management businesses. While these near term theses are not yet fully appreciated, we believe the longer term thesis for the company is now more interesting."

— Lisa Kailai Han

Shares of Nvidia fell nearly 3% Tuesday, falling below their 50-day moving average for the since time since early May. The 50-day average, a technical indicator, is considered the first line of resistance in a downtrend.

The popular chip stock is still up about 26% in 2025.

— Yun Li

Stocks should have more room to run during the rate-cutting cycle even after the market has rallied back to record highs, according to Mike Wilson, Morgan Stanley's CIO and chief U.S. equity strategist.

"We push back on the idea that rate cuts are already priced as equity returns tend to be strong during rate cutting cycles, and rate-sensitive areas like small caps are barely off the relative lows," the strategist wrote in a note to clients. "We're respectful of the upcoming weak seasonal window, but remain buyers of dips should they come."

Morgan Stanley believes valuation tends to remain supported when the policy rate is being reduced and earnings growth is above the long-term median.

— Yun Li

On Tuesday, seven stocks in the S&P 500 traded at new 52-week highs.

Of these names, four stocks hit new all-time highs. The seven stocks that reached this milestone are as follows:

• Fox Corporation Class B trading at all-time highs back to its creation as the portion not acquired by Disney in 2019
• Fox Corporation Class A trading at all-time highs back to its creation as the portion not acquired by Disney in 2019
• Ralph Lauren trading at all-time highs back to its IPO in June 1997
• CVS Health trading at levels not seen since April 2024
• Incyte Corp trading at levels not seen since June 2021
• Insulet trading at all-time highs back to its IPO in February 2007
• Newmont Mining trading at levels not seen since April 2022

On the other hand, four stocks in the benchmark traded at new 52-week lows:

• Keurig Dr Pepper (KDP) trading at lows not seen since October 2023
• Constellation Brands (STZ) trading at lows not seen since April 2020
• Factset Research Systems (FDS) trading at lows not seen since June 2022
• MarketAxess Holdings (MKTX) trading at lows not seen since October 2018

— Christopher Hayes, Lisa Kailai Han

Investors don't need to view the current pullback in big technology stocks as a major event, according to Josh Brown.

"I don't think it's an emergency," the Ritholtz Wealth Management CEO said on CNBC's "Halftime Report." "I just think it's people doing a combination of: profit taking; recognizing that valuations and expectations are high; and getting excited by other areas of the market that are working."

— Alex Harring

Bitcoin edged higher by 1% to reclaim the $111,000 level, as stocks fell and gold shot to a new record.

"Gold's run of outperformance has been driven by rate‑cut expectations, dollar weakness, and geopolitical uncertainty, reaffirming its role as a traditional safe‑haven hedge," Joel Kruger, market strategist at LMAX Group, told CNBC. "Bitcoin on the other hand, while also benefiting from all of these themes, has had to contend with other drivers in Q3; namely a massive rotation into Ethereum, which has factored into some of the relative weakness" against it.

Leo Zhao, investment director at MEXC Ventures, said the split "shows a market that wants both safety and yield" and that "crypto is increasingly competing with traditional safe-havens."

While bitcoin is still trading below key resistance levels, investors say its market dominance could return if the Federal Reserve cuts interest rates at its Sept. 16-17 meeting.

For more, read our full story here.

— Tanaya Macheel

Shares of Frontier Airlines popped around 13% in midday trading Tuesday after Spirit Airlines on Friday filed for Chapter 11 bankruptcy protection, the second time in a year that the airline has done so.

On Tuesday, Deutsche Bank upgraded Frontier to buy from hold, saying that the carrier is "best-positioned to be the biggest beneficiary of Spirit's bankruptcy given their network overlap."

"Currently, 35% of Frontier's network overlaps with Spirit for the September quarter," analyst Michael Linenberg wrote. "We estimate that the overlap should increase to approximately 40% by the December quarter following Frontier's recent announcement to add 20 new routes beginning later this year (of which 18 are presently served by Spirit)."

Linenberg's updated price target on the stock calls for more than 63% upside from Friday's close.

— Sean Conlon

The Nasdaq 100 fell below a key short-term momentum indicator on Tuesday, implying the index is in a downtrend.

The benchmark is trading below its 50-day moving average level of 23,109.73 for the first time since April 30, weighed down by a slide in some of the biggest tech names. Nvidia contributed to a 62.5 point drop. Apple erased 31 points. Amazon, more than 28 points.

— Gina Francolla, Sarah Min

Despite declines in the stock market, the outlook is still favorable, according to Bank of America.

Global equity markets saw modest declines last week, with the U.S. falling 0.1%, quant strategist Nigel Tupper said in a note Tuesday. The best performing global sectors were tech hardware, energy and media, he said. Utilities, insurance and consumer staples fell the most, he added.

"The big picture remains supportive of equity market returns with expectations that rates may fall, the AI investment theme remains in place, and the global earning cycle is surprisingly robust," Tupper wrote.

— Michelle Fox

Kraft Heinz shares tumbled to their lows of the day after Warren Buffett told CNBC's Becky Quick that he is "disappointed" with the company's decision to spit — unwinding much of the merger he orchestrated a decade ago.

The stock last traded more than 3% lower. Buffett's Berkshire Hathaway is by far the largest Kraft Heinz shareholder, with a 27.5% stake in the company.

— Amelia Lucas

The U.S. manufacturing sector contracted in August, marking its the sixth consecutive month of contraction, according to data released Tuesday by The Institute for Supply Management.

The ISM manufacturing index rose to 48.7% last month, up from the 48% seen in July. While that was better than the Dow Jones forecast for 48.5%, the reading was still below 50%, meaning that the manufacturing sector is generally contracting.

— Sean Conlon

Volatility spiked on Tuesday, with a raft of macroeconomic concerns, including President Donald Trump's tariffs, weighing on investors/adding to uncertainty.

Wall Street's fear gauge, the CBOE Volatility Index, surged more than 3 points to a high of 19.29.

— Sean Conlon

Stocks traded lower on Tuesday morning, starting September off on a sour note.

The S&P 500 fell 1.4% just after the opening bell, while the Nasdaq Composite dropped 1.8%. The Dow Jones Industrial Average also slid 560 points, or 1.2%.

— Sean Conlon

Here are some of the stocks moving in premarket trading:

• PepsiCo — Shares gained 4% after The Wall Street Journal reported, citing sources, that activist Elliott Management had taken a $4 billion stake in the snack and beverage giant.
• Air Lease — The stock popped 6.2 6% after the aircraft leasing company reached a merger deal with Apollo, Brookfield, SMBC Aviation Capital and Sumitomo.
• Cytokinetics — The biopharmaceutical company jumped 26% after it said a clinical trial of its heart disease drug, aficamten, showed a meaningful improvement in patients with symptomatic obstructive hypertrophic cardiomyopathy, than the standard of care, metoprolol.

To see more names moving before the bell, read the full story here.

— Michelle Fox

U.S. equity futures reached new lows of the session Tuesday as Treasury yields rose to new heights.

Just after 8:45 a.m. ET, futures tied to the Dow Jones Industrial Average fell 420 points, or about 0.9%, to 45,181.00. S&P 500 futures and Nasdaq-100 futures pulled back 1.1% and 1.5%, respectively.

Meanwhile, the 30-year Treasury yield rose more than 7 basis points to 4.99%. The 10-year Treasury yield also gained more than 7 basis points, reaching 4.30%.

The moves come after a federal appeals court struck down most of President Donald Trump's tariffs as illegal on Friday. The ruling raises the likelihood that the federal government will have to repay the money it collected in tariff revenue.

— Sean Conlon

Constellation Brands shares fell nearly 8% in premarket trading Tuesday after the brewer slashed its full-year guidance, citing weakness in consumer demand.

The company, which owns Modelo and Corona, now expects its earnings for the period to come in between $10.77 and $11.07 per share, down from its prior guidance of $12.07 and $12.37 per share.

"We continue to navigate a challenging macroeconomic environment that has dampened consumer demand and led to more volatile consumer purchasing behavior since our first quarter of fiscal 2026," CEO Bill Newlands said in a statement.

Newlands added that high-end beer buy rates "decelerated sequentially" in the past several months amid declines in trip frequency and spend per trip. He also noted that declines in high-end beer buy rates for Hispanic consumers were "more pronounced" than those in the general market, saying that "has an outsized impact on our Beer Business compared to the broader beer category."

"We remain resolutely focused on continuing to execute against our strategic objectives, including driving distribution gains, disciplined innovation, and investing behind our brands," the CEO continued.

— Sean Conlon

Shares of Signet Jewelers rose more than 5% in the premarket on Tuesday after the jewelry retailer's second-quarter results topped Wall Street's expectations.

Signet posted adjusted earnings of $1.61 per share on $1.54 billion in revenue for the quarter, while analysts polled by FactSet had called for $1.24 in earnings per share and $1.50 billion in revenue.

The company also raised its earnings and revenue guidance for the full year.

— Sean Conlon

Kraft Heinz on Tuesday confirmed earlier reports that it would split up into two publicly traded companies through a tax-free spinoff. The names of the two new companies will be determined at a later date.

One unit, which currently goes by "Global Taste Elevation," will include Kraft's shelf-stable products such as Heinz and Kraft Mac & Cheese. The other one, "North American Grocery," will include brands such as Oscar Mayer and Lunchables.

The transaction is expected to be completed in the second half of next year. Shares were little changed in the premarket.

— Fred Imbert

September is historically the worst month for stocks. In data going back to 1950, the S&P 500 has averaged a 0.7% decline in September, both for all years and post-election years, according to the Stock Trader's Almanac.

In recent years, that track record has gotten worse. Over the past five years, the S&P 500 has averaged a 4.2% drop in September. Over the last 10 years, the index has dropped 2% on average.

— Sarah Min

Asia-Pacific markets closed mixed as investors assessed the Shanghai Cooperation Organization meeting of leaders in Tianjin, with tariff uncertainty weighing on sentiment.

This comes after a U.S. federal appeals court on Friday ruled that most of President Donald Trump's global tariffs are illegal.

India markets were in focus after Trump said that India had offered to reduce its tariffs on U.S. imports to zero.

"They have now offered to cut their Tariffs to nothing, but it's getting late. They should have done so years ago," Trump wrote on Truth Social. He added that the U.S.' relationship with India was "one sided."

India's benchmark Nifty 50 rose 0.29%, while the BSE Sensex index advanced 0.26% as of 1:40 p.m. Indian Standard Time (4:10 a.m. ET).

Japan's Nikkei 225 ended the day 0.29% higher at 42,310.49 after choppy trade, while the broader Topix index moved up 0.61% to 3,081.88.

Suntory Beverage & Food came in the spotlight following reports that its CEO and Chairman Takeshi Niinami resigned following a police investigation into his purchase of a potentially illegal supplement.

Shares of the Japanese soft drinks and wellness food products producer ended the day 2.94% higher.

Over in South Korea, the Kospi index increased by 0.94% to 3,172.35, while the small-cap Kosdaq added 1.15% to 794.

Hong Kong's Hang Seng index fell 0.47% to close at 25,496.55, while mainland China's CSI 300 dropped 0.74% to 4,490.45.

Australia's S&P/ASX 200 moved down 0.3% to end the day at 8,900.60.

The Australian Securities and Investments Commission said that its review panel had imposed a fine of $3.88 million Australian dollars ($2.52 million) on a local unit of French lender Societe Generale for failing to prevent suspicious orders in the electricity and wheat futures markets.

An investigation by the regulatory body found that Societe Generale Securities Australia, which is one of the largest participants on the ASX 24 derivatives market, had allowed two of its clients to place 33 suspicious orders between May 2023 and February 2024. That "volatile period" saw supply issues in global energy and wheat markets caused by the Russia-Ukrainian War, among other factors, the panel said.

Meanwhile, the country's current account balance for the April to June quarter came in at a deficit of AU$13.7 billion Australian dollars, compared to the AU$14.7 billion deficit the quarter before and the AU$16 billion deficit forecast by economists polled by Reuters.

— Amala Balakrishner

A federal appeals court ruled Friday that most of President Donald Trump's global tariffs are illegal, striking a massive blow to the core of his aggressive trade policy.

The U.S. Court of Appeals for the Federal Circuit held in a 7-4 ruling that the law Trump invoked when he granted his most expansive tariffs — including his "reciprocal" tariffs — does not actually grant him the power to impose those levies.

"The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution," the court said. "Tariffs are a core Congressional power."

Read the full story here.

— Kevin Breuninger, Dan Mangan

Stock futures opened higher Monday night.

Dow Jones Industrial Average futures rose 19 points. S&P 500 futures were higher by about 0.11% and Nasdaq 100 futures added 0.14%.

— Sarah Min