US markets opened September on shaky footing, rattled by a mix of tariff uncertainty, weak factory data, and a string of corporate headlines. Stocks drifted lower, Treasuries sold off, and the VIX- Wall Street’s so-called fear gauge jumped higher.

Among the movers, Kraft Heinz shook investors with plans to split the company in two, Elon Musk doubled down on Tesla’s humanoid robot vision, and the manufacturing sector continued to shrink, adding to worries about the broader economy.

A glance at the biggest stories capturing attention today.

Tariff uncertainty weighs on markets

US stocks slipped to their lowest levels in over a week on Tuesday, with tariff headlines once again clouding the outlook.

A split appeals court said most of Donald Trump’s global tariffs were unlawful but kept them in place for now, at least until mid-October while the administration appeals to the Supreme Court.

For traders, that means more uncertainty on trade policy, and it showed up quickly in sentiment.

Treasuries sold off as well. Yields on longer-dated bonds pushed higher, with the 30-year flirting with 5%, a level that makes equities harder to justify.

The VIX, Wall Street’s so-called fear gauge, popped to a three-week high.

Big tech took the hardest hit. Nvidia, Apple and Microsoft all traded lower, dragging the Nasdaq with them. More defensive names did better, with PepsiCo gaining after news of activist investor interest.

Attention now turns to the August jobs report later this week, a key input for the Fed as investors handicap the odds of rate cuts this fall.

For now, September is off to a shaky start, with politics and policy adding another layer of risk to an already uneasy market. Read full report here

Kraft Heinz splits after merger strains

Kraft Heinz is undoing its blockbuster 2015 merger, announcing plans to break into two separate publicly traded companies.

One business will house the faster-growing lines like sauces, spreads and boxed meals, anchored by brands like Heinz ketchup and Kraft Mac & Cheese.

The other will be built around grocery staples, including Oscar Mayer meats and Lunchables.

The company says the split, expected to be completed in the back half of 2026, should sharpen focus and free up resources for each side of the portfolio. Investors weren’t convinced: shares fell more than 5% after the announcement. Read full report here

Musk bets Tesla on robots

Elon Musk is once again betting big on Tesla’s future and this time, it’s not about cars. Musk said he expects the company’s humanoid robot, Optimus, to account for as much as 80% of Tesla’s value in the years ahead.

Speaking on X, Musk stressed that while Tesla remains centered on electric vehicles today, its long-term growth story hinges on the Optimus program.

The robot is being built to handle a wide range of tasks, from factory work inside Tesla’s plants to jobs across other industries. Production is slated to begin in 2026, with thousands of units expected to roll out.

Musk has described Optimus as a breakthrough product that could eventually eclipse the car business altogether, reshaping how labor and productivity are measured. Read full report here

US manufacturing growth remains elusive

US manufacturing shrank again in August, the sixth straight month of contraction, the ISM said Tuesday. The headline PMI came in at 48.7, a touch better than July’s 48.0 but still stuck below the 50 line that marks growth.

Some components showed life. New orders rose to 51.4, suggesting demand is holding up, but production slipped back to 47.8. Hiring remained weak, though the pace of job cuts slowed.

Companies in the survey repeatedly flagged tariffs as a problem, pushing up costs and complicating supply chains.

So while orders offer a bit of optimism, the broader picture for factories remains tough, with trade pressures continuing to bite. Read full report here

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