US stocks futures wavered around the flatline Monday with Wall Street set for a delayed open to the week after Monday's closure for the Labor Day holiday. Investors are braced for a tumultuous month, with legal drama around President Trump's tariffs and concerns over Fed independence in high focus.
Dow Jones Industrial Average futures (YM=F) fell 0.1%, while contracts tied to the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) hovered just below the flatline.
After hitting record highs in August, the S&P 500 (^GSPC) and Dow (^DJI) ended the month with gains of 1.4% and 2%, respectively, marking the fourth straight month of gains for those indexes. The Nasdaq also capped August with a 1.6% gain in its fifth straight winning month.
The muted first moves in September follow a potentially major legal blow to Trump’s trade agenda. A federal appeals court ruled Friday that the bulk of Trump’s sweeping global tariffs were unconstitutional, saying only Congress has authority to impose such levies. Trump blasted the decision as “highly partisan” and vowed to take the case to the Supreme Court.
The uncertainty could add another overhang for markets just as the calendar flips to September, historically the weakest month for stocks. The S&P 500 has dropped an average of 4.2% over the past five Septembers and more than 2% over the last decade.
Meanwhile, investors are also watching developments in Washington that could test the Fed’s independence. A court hearing last week on whether Trump can fire Fed Governor Lisa Cook ended without a ruling as the president continues to make attempts to stack the Fed's Board of Governors in his favor.
Earnings seasons continues this week, albeit at a slower pace than throughout much of August. Zscaler (ZS), Macy's (M), and DocuSign (DOCU) all report in the coming days.
Coming soon
Stock market coverage for Tuesday, September 2, 2025.
