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U.S. stocks are tumbling on Tuesday, and some of Wall Street’s biggest stars are leading the way lower.The S&P 500 sank 1.2% and was on track for its worst loss in a month. The Dow Jones Industrial Average was down 498 points, or 1.1%, as of 9:37 a.m. Eastern time, and the Nasdaq composite was down a market-leading 1.4%. All three are still close to their recently set records.Nvidia and other companies that have benefited from the frenzy around artificial-intelligence technology were some of the heaviest weights on the market. They have soared for years on expectations that they’re at the vanguard of the next revolution for the global economy. But they’ve also shot so high that critics say their prices have simply become too expensive.Nvidia, whose chips are powering much of the move into AI, fell 2.3%. Broadcom, another chip giant, fell 2.1%.The overall stock market was feeling pressure from rising yields in the bond market, where the 10-year Treasury yield climbed to 4.27% from 4.23% late Friday. When bonds are paying more in interest, investors are less willing to pay high prices for stocks.Longer-term bond yields are on the rise around the world, in part because of worries about how difficult it will be for governments to repay their growing mountains of debt.In the United States, Treasury yields are feeling additional pressure from President Donald Trump’s attacks on the Federal Reserve for not cutting interest rates sooner. The fear is that a less independent Fed will be less likely to make the unpopular decisions needed to keep inflation under control, such as keeping short-term interest rates higher than investors would like.Tuesday was also the first opportunity for trading in the U.S. Treasury market after a federal appeals court ruled that Trump overstepped his legal authority when announcing sweeping tariffs on almost every country on Earth, though it left the tariffs in place for now. While the tariffs have created confusion and may have hurt the U.S. job market, they also have brought in revenue that could help the U.S. government pay some of its debt.In another signal about increasing worries in financial markets, the price of gold rose 1% and was near its record. The metal has often provided a haven for investors in times of uncertainty.On Wall Street, Constellation Brands tumbled 6.4% after the beer, wine and spirits company warned that it’s seen a slowdown in purchases of its high-end beers, particularly among its Hispanic customers. That pushed it to slash its forecast for profit this fiscal year.Kraft Heinz slipped 1.4% after announcing that it’s splitting into two, a decade after a merger of the brands created one of the biggest food companies on the planet.One of the companies will include shelf stable meals and include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include the Oscar Mayer, Kraft Singles and Lunchables brands. The official names of the two companies will be released later.Among the market’s few gainers was PepsiCo, which jumped 3.5% after an investment firm said it sent suggestions to the company’s board to reaccelerate its growth and boost financial performance. The investor, Elliott Management, has a history of buying into companies and then pushing for big changes that can lead to better stock performance.In stock markets abroad, indexes slumped across Europe, with Germany’s DAX losing 2%. That was after a more mixed finish in Asia, where indexes rose 0.9% in Seoul but fell 0.5% in Hong Kong. AP Business Writer Elaine Kurtenbach contributed. Stan Choe, AP Business Writer
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E-Commerce
Packaged food giant the Kraft Heinz Company announced on Tuesday that its board of directors has unanimously approved a plan to split into two separate, publicly traded companies. The proposed split will essentially reverse a merger between the companies from 2015, which has not provided favorable long-term results. Shares of Kraft Heinz (NYSE:KHC) were down more than 4% in early trading on Tuesday after the announcement. The stock is down 13% year to date and more than 25% over the last 12 months. What will the breakup look like? The names of the two separate companies have yet to be decided. The first company, referred to in the news release as Global Taste Elevation Co., will primarily feature shelf-stable meals. It will include brands like Heinz, Kraft Mac & Cheese, and Philadelphia. The second company, referred to in the news release as North American Grocery Co., will feature a scaled portfolio of North American staples. It will include brands like Kraft Singles, Lunchables, and Oscar Mayer. The proposed separation is intended to be tax-free, with the transaction expected to close in the second half of 2026. According to Kraft Heinz, the split is intended to maximize Kraft Heinzs capabilities and brands while reducing complexity, allowing both new companies to more effectively deploy resources toward their distinct strategic priorities.” “By separating into two companies, we can allocate the right level of attention and resources to unlock the potential of each brand to drive better performance and the creation of long-term shareholder value,” said Miguel Patricio, executive chair of the Kraft Heinz board, in a statement. A question-and-answer session is scheduled for today, Tuesday, September 2, 2025. Mega-merged companies are thinking smaller The proposed split follows a recent trend in which larger companies are splitting into two smaller entities, sometimes undoing the size and scale they’d achieved by merging in the first place. In 2023, The Kellogg Companys board of directors approved a plan to split into two separate entities: Kellanova, which would focus on snack foods, and WK Kellogg Co, which would primarily focus on cereals. The separation was finalized in October 2023. Unilever, meanwhile, announced plans in 2024 to spin off its ice cream division as a separate company. The Magnum Ice Cream Company, which will operate as a stand-alone business featuring brands such as Ben & Jerrys, Magnum, and Wall’s, is expected to go public during the last quarter of 2025. And just last week, Keurig Dr Pepper announced its ultimate plans to split into two separate companies. It will acquire JDE Peets, then operate as two businessesone focused on coffee and another on other beverages, such as sodas and energy drinks.
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E-Commerce
It’s tomato season and Lidia is harvesting on farms in California’s Central Valley.She is also anxious. Attention from U.S. Immigration and Customs Enforcement could upend her life more than 23 years after she illegally crossed the U.S.-Mexico border as a teenager.“The worry is they’ll pull you over when you’re driving and ask for your papers,” said Lidia, who spoke to the Associated Press on condition that only her first name be used because of her fears of deportation. “We need to work. We need to feed our families and pay our rent.”As parades and other events celebrating the contributions of workers in the U.S. are held Monday for the Labor Day holiday, experts say President Donald Trump’s stepped-up immigration policies are impacting the nation’s labor force.More than 1.2 million immigrants disappeared from the labor force from January through the end of July, according to preliminary Census Bureau data analyzed by the Pew Research Center. That includes people who are in the country illegally as well as legal residents.Immigrants make up almost 20% of the U.S. workforce and that data shows 45% of workers in farming, fishing and forestry are immigrants, according to Pew senior researcher Stephanie Kramer. About 30% of all construction workers are immigrants and 24% of service workers are immigrants, she added.The loss in immigrant workers comes as the nation is seeing the first decline in the overall immigrant population after the number of people in the U.S. illegally reached an all-time high of 14 million in 2023.“It’s unclear how much of the decline we’ve seen since January is due to voluntary departures to pursue other opportunities or avoid deportation, removals, underreporting or other technical issues,” Kramer said. “However, we don’t believe that the preliminary numbers indicating net-negative migration are so far off that the decline isn’t real.”Trump campaigned on a promise to deport millions of immigrants working in the U.S. illegally. He has said he is focusing deportation efforts on “dangerous criminals,” but most people detained by ICE have no criminal convictions. At the same time, the number of illegal border crossings has plunged under his policies.Pia Orrenius, a labor economist at the Federal Reserve Bank of Dallas, said immigrants normally contribute at least 50% of job growth in the U.S.“The influx across the border from what we can tell is essentially stopped, and that’s where we were getting millions and millions of migrants over the last four years,” she said. “That has had a huge impact on the ability to create jobs.” ‘Crops did go to waste’ Just across the border from Mexico in McAllen, Texas, corn and cotton fields are about ready for harvesting. Elizabeth Rodriguez worries there won’t be enough workers available for the gins and other machinery once the fields are cleared.Immigration enforcement actions at farms, businesses and construction sites brought everything to a standstill, said Rodriguez, director of farmworker advocacy for the National Farmworker Ministry.“In May, during the peak of our watermelon and cantaloupe season, it delayed it. A lot of crops did go to waste,” she said.In Ventura County, California, northwest of Los Angeles, Lisa Tate manages her family business that grows citrus fruits, avocados and coffee on eight ranches and 800 acres (323 hectares).Most of the men and women who work their farms are contractor-provided day laborers. There were days earlier this year when crews would be smaller. Tate is hesitant to place that blame on immigration policies. But the fear of ICE raids spread quickly.Dozens of area farmworkers were arrested late this spring.“People were being taken out of laundromats, off the side of the road,” Tate said.Lidia, the farmworker who spoke to the AP through an interpreter, said her biggest fear is being sent back to Mexico. Now 36, she is married with three school-age children who were born here.“I don’t know if I’ll be able to bring my kids,” said Lidia. “I’m also very concerned I’d have to start from zero. My whole life has been in the United States.” From construction to health care Construction sites in and around McAllen also “are completely dead,” Rodriguez said.“We have a large labor force that is undocumented,” she said. “We’ve seen ICE particularly targeting construction sites and attempting to target mechanic and repair shops.”The number of construction jobs are down in about half of U.S. metropolitan areas, according to an Associated General Contractors of America analysis of government employment data. The largest loss of 7,200 jobs was in the Riverside-San Bernardino-Ontario, California, area. The Los Angeles-Long Beach-Glendale area lost 6,200 jobs.“Construction employment has stalled or retreated in many areas for a variety of reasons,” said Ken Simonson, the association’s chief economist. “But contractors report they would hire more people if only they could find more qualified and willing workers and tougher immigration enforcement wasn’t disrupting labor supplies.”Kramer, with Pew, also warns about the potential impact on health care. She says immigrants make up about 43% of home health care aides.The Service Employees International Union represents about 2 million workers in health care, the public sector and property services. An estimated half of long-term care workers who are members of SEIU 2015 in California are immigrants, said Arnulfo De La Cruz, the local’s president.“What’s going to happen when millions of Americans can no longer find a home care provider?” De La Cruz said. “What happens when immigrants aren’t in the field to pick our crops? Who’s going to staff our hospitals and nursing homes?” _ An earlier version of this story incorrectly referred to the name of the U.S. Immigration and Customs Enforcement agency. The name is not Immigration Control and Enforcement. Corey Williams, Associated Press
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