When markets resumed trading after the long Labor Day holiday, the S&P 500 finished Tuesday's session down 0.7%. The Nasdaq fell 0.8% while the Dow fell 0.6%. Chip stocks fell, and during Monday's session, Nvidia (NVDA) fell 2%. Read Investopedia's full coverage of today's trading here.
With investors anticipating Friday morning's release of an August employment report that could have significant ramifications for Federal Reserve officials considering potential interest-rate reduction at their meeting later this month, the labor market is likely to be the center of attention during the abbreviated trading week.
After the packaged food giant revealed a plan to split its North American grocery business from its sauces and spreads operation, Kraft Heinz (KHC) shares fell 7%, the most of any S&P 500 firm. Heinz ketchup, Philadelphia cream cheese, and Kraft Mac & Cheese will continue to be produced by the larger sauce-focused company, while Oscar Mayer, Kraft Singles, and Lunchables are part of the supermarket business. Ten years after Kraft and Heinz's massive merger to form one of the biggest food corporations in the world, the company announced the separation, which it anticipates closing in the second half of 2026.
Due to declining demand for beer and the effects of tariffs, alcoholic beverage manufacturer Constellation Brands (STZ) reduced its adjusted profit projection. As consumer spending is impacted by macroeconomic uncertainties, the manufacturer of the Modelo and Corona beer brands now projects a 2% to 4% drop in beer sales in fiscal 2026. On Tuesday, Constellation Brands' stock fell 6.6%.
The biggest lithium miner in the world, Albemarle (ALB), had a 6.3% decline in its stock price. Ahead of the holiday weekend, Baird analysts increased their price target for Albemarle stock, pointing to a rebound in lithium prices after a major Chinese producer reduced capacity. However, noting a lack of insight into the dynamics of the lithium market and the unpredictability of Chinese government action, Baird kept its "underperform" recommendation on Albemarle stock.
The S&P 500's best daily performance was achieved by Ulta Beauty (ULTA), a retailer of beauty items, as its shares surged 8.1% to recover from Friday's significant losses following a tumultuous trading week. Barclays analysts increased their price target for Ulta shares ahead of the holiday weekend, citing the cosmetic company's impressive second-quarter earnings and strategic goals under CEO Kecia Steelman, who assumed leadership of Ulta at the start of 2025.
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