04:44 PM EDT, 09/02/2025 (MT Newswires) -- US equity indexes retreated Tuesday as the so-called Magnificent-7 stocks declined amid gains in government bond yields.

The Nasdaq Composite slumped 0.8% to 21,279.63, with the S&P 500 down 0.7% to 6,415.54, and the Dow Jones Industrial Average 0.6% lower at 45,295.81. September is historically the worst month for equities, with the S&P 500 averaging a 4.2% drop over the last five years and falling more than 2% on average over the last 10 years, CNBC reported.

All sectors except energy, consumer staples, and health care fell intraday. Real estate, industrials, and consumer discretionary led the decliners.

Most Treasury yields rose, with the 10-year yield up 4.7 basis points to 4.27% and the two-year rate 2.4 basis points higher at 3.65%.

Nvidia ( NVDA ) paced declines in Mag-7 stocks, down 2%, followed by Amazon.com ( AMZN ) and Tesla (TSLA). Nvidia's ( NVDA ) shares dropped, the second-worst performer on the Dow, following reports that Alibaba ( BABA ) is developing its own integrated circuits to replace Nvidia's ( NVDA ) H20 chip.

The CBOE Volatility Index jumped 6.5% to 17.17 due in part to the US Court of Appeals for the Federal Circuit on Friday ruling most of the Trump administration's trade tariffs are unlawful, based on a 7-4 vote. President Donald Trump, in a social media post, said that he will appeal to the Supreme Court to overturn the decision.

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

The ICE US Dollar Index advanced 0.6% to 98.33.

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

US construction spending fell 0.1% in July, as expected in a Bloomberg-compiled survey and following a 0.4% decrease in June.

The S&P Global US manufacturing index was revised down to 53 for August from a flash reading of 53.3, compared with expectations for no revision in a survey compiled by Bloomberg.

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%, the steepest decline on the S&P 500 and the Nasdaq.

Biogen (BIIB) and Stoke Therapeutics ( STOK ) released data from Phase 1/2a and open-label extension studies that support the potential for zorevunersen to be the "first" disease-modifying medicine for Dravet syndrome. Shares of Biogen climbed 4.3%, the top performer on the S&P 500 and the Nasdaq.

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