Investors are facing increased volatility as Wall Street returns from the Labor Day holiday. September, historically the worst month for the U.S. stock market, brings fears of Federal Reserve independence and tariff uncertainty under President Donald Trump. Recent doubts about the legality of Trump’s tariffs have triggered a market sell-off, with the CBOE Market Volatility index spiking and the S&P 500 dropping 0.7%. Treasury yields surged, reaching their highest levels since mid-July, which may impact stock demand. Gold and bitcoin are rising as alternative assets in volatile markets.

The surge in 30-year Treasury yields to nearly 5% is putting pressure on the market. September is known for portfolio adjustments as investors prepare for year-end. Corporate bond spreads hit record lows last month, leading to expectations of increased volatility. The August jobs report will influence Fed rate cuts, with heightened scrutiny on Trump’s Fed appointments. Gold and bitcoin are both performing well as alternative assets to fiat currencies.

Read more at Yahoo Finance: Investors on edge as September reset exposes simmering US market risks