Wall Street’s main indexes hit a more than one-week low on Tuesday, as investors returning from a long holiday weekend worried about the legality of President Donald Trump’s tariffs and awaited crucial economic reports.

A divided U.S. appeals court ruled on Friday that most of Trump’s tariffs are illegal, but allowed for the levies to be in place until October 14. The Trump administration can still file an appeal with the Supreme Court.

Yields on longer-dated U.S. Treasuries rose on Tuesday, with ones on the 30-year notes at their highest levels in more than a month, pressuring equities.

The CBOE Market Volatility index also touched its highest mark in over three weeks and was last up 1.85 points at 18.

“If the Supreme Court rules the tariffs to be illegal, the government has to pay all that money back … if there’s more debt, yields will rise higher, which means more trouble for the market,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.

At 10:04 a.m. ET, the Dow Jones Industrial Average fell 282.83 points, or 0.62%, to 45,262.05, the S&P 500 lost 54.25 points, or 0.84%, to 6,406.01 and the Nasdaq Composite lost 209.65 points, or 0.98%, to 21,245.90.

Indexes pared some declines after the Institute for Supply Management (ISM) said that its manufacturing PMI rose to 48.7 in August from 48 in July.

Still, most S&P 500 sectors traded in the red, with tech stocks the biggest drags. Nvidia fell 1.5%, Apple lost 0.8% while Microsoft was off 0.6%.

Conversely, a 3.6% gain in PepsiCo after Elliott Management disclosed a $4 billion stake in the beverages giant, launching an activist campaign, limited losses on the consumer staples sector.

Meanwhile, caution also prevailed ahead of the August nonfarm payrolls report, due on Friday, which will follow a monthly private payrolls reading and job openings figures.

Markets are pricing in about a 92% chance of a 25-basis-point cut in interest rates at the Fed’s meeting later this month, according to the CME Group’s FedWatch tool.

Investors’ dovish tilt came after July’s weak job report, with Fed Chair Jerome Powell acknowledging the growing risks to the labor market at the Jackson Hole symposium, helping the S&P 500 and the Dow log their fourth consecutive month of gains in August.

The Nasdaq logged its fifth straight monthly gain last month.

Markets are entering seasonally dour September, which, according to DataTrek Research, is the only month since 1958 where the S&P 500’s mean returns are negative.

An announcement from Trump related to the U.S. defense department later in the day will also be watched.

In stocks, gold miners gained after bullion prices hit a record high. U.S.-listed shares of Harmony Gold rose 5.6%, Barrick Mining gained 1.2% and Newmont added 1.1%.

Kraft Heinz fell 3%. The packaged goods giant will split into two listed companies.

Quarterly earnings from retailers this week will also be on the radar.

Declining issues outnumbered advancers by a 2.91-to-1 ratio on the NYSE and by a 1.8-to-1 ratio on the Nasdaq.

The S&P 500 posted six new 52-week highs and one new low, while the Nasdaq Composite recorded 48 new highs and 48 new lows.

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(Reporting by Purvi Agarwal and Ragini Mathur in Bengaluru; Editing by Pooja Desai and Maju Samuel)