US Equity Indexes Decline Amid Gains in Treasury Yields

03:52 PM EDT, 09/02/2025 (MT Newswires) -- US equity indexes declined ahead of the close on Tuesday, following gains in government bond yields, gold, and the dollar.

The Nasdaq Composite slumped 0.9% to 21,256.1, with the S&P 500 down 0.8% to 6,407.3, and the Dow Jones Industrial Average 0.7% lower at 45,246.5. All sectors except energy, consumer staples and health care fell intraday, with real estate and industrials leading the decliners.

The CBOE Volatility Index jumped 9.6% to 17.67.

Most Treasury yields rose, with the 10-year yield up 4.9 basis points to 4.28% and the two-year rate 2.6 basis points higher at 3.65%.

Gold futures surged 2.5% to $3,599.9, after scaling a new peak of $3,600.30 earlier in the session.

The Institute for Supply Management's US manufacturing index rose to 48.7 in August from 48 in July, versus expectations for 49 in a survey compiled by Bloomberg. The print marks the sixth consecutive month below the breakeven level of 50, according to a Jefferies note.

In company news, Kraft Heinz (KHC) said its board approved a plan to split the company into two publicly traded entities through a tax-free spin-off. Shares slumped 7.4% intraday, the steepest decline on the S&P 500 and the Nasdaq.

West Texas Intermediate crude oil futures jumped 2.5% to $65.63 a barrel.

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