US stock futures slipped on Tuesday to start a holiday-shortened trading week, as Wall Street started to look ahead to a crucial monthly jobs update that will shape expectations for interest-rate cuts.

Dow Jones Industrial Average futures (YM=F) slid 0.4%, while those on the S&P 500 (ES=F) dropped 0.5%. Contracts on the tech-focused Nasdaq 100 (NQ=F) fell 0.7%, on the heels of another winning month for major Wall Street stock indexes.

Wall Street is set for a delayed open to the week after Monday's closure for the Labor Day holiday. Investors are braced for a tumultuous month, with legal drama around President Trump's tariffs and concerns over Fed independence in high focus.

Gold (GC=F) surged to above $3,500 an ounce on Tuesday to eclipse April's all-time high at one point. The latest run has been fueled by expectations that the Federal Reserve will lower interest rates this month, after Chair Jerome Powell opened the door to a reduction.

Those rate-cut bets face a key test in Friday's jobs report for August — in keen focus, after disappointing inflation data dented stocks last week. Readings on job openings and private payrolls precede the crucial report, while an update on US manufacturing on Tuesday will shed light on the economy.

Markets are pricing in roughly 90% odds of a 25 basis point rate cut in September, but this week's data could help make the case for deeper easing.

Meanwhile, investors are watching developments in Washington that could test the Fed’s independence. A court hearing last week on whether Trump can fire Fed Governor Lisa Cook ended without a ruling as the president continues to make attempts to stack the Fed's Board of Governors in his favor.

The first market moves in September also follow a potentially major legal blow to Trump’s trade agenda. A federal appeals court ruled Friday that the bulk of Trump’s sweeping global tariffs were unconstitutional. Trump blasted the decision as "highly partisan" and vowed to take the case to the Supreme Court.

The uncertainty could add another overhang for markets just as the calendar flips to September, historically the weakest month for stocks. The S&P 500 has dropped an average of 4.2% over the past five Septembers and more than 2% over the last decade.

Earnings seasons continues this week, albeit at a slower pace than throughout much of August. Zscaler (ZS), Macy's (M), and DocuSign (DOCU) all report in the coming days.

Economic data: S&P Global US manufacturing PMI (August final reading); ISM manufacturing PMI

Earnings calendar: Zscaler (ZS), Nebius Group (NBIS), NIO (NIO)

Here are some of the biggest stories you may have missed on Labor Day, overnight and early this morning:

Trump says India trade relationship is a 'disaster'

Why hedge funds are still cautious about buying US stocks

Bessent: Trump may declare a national housing emergency

Gold jumps above $3,500 to hit record high on rate-cut bets

Bessent sees Supreme Court backing Trump tariffs, readies Plan B

Tesla falls short with just 600 orders in India since launch

Tesla's China-made EV sales fall 4% August

Foreign buyers are driving Japan's record reflation-trade rally

Tesla sales soar in Turkey, becomes No. 2 brand in August

After becoming net sellers of US stocks in August, hedge funds remain hesitant about buying as September trading kicks off, Reuters reports.

The month has often been a downbeat one for markets. History looks set to repeat itself, even with a potential US interest-rate cut on the horizon.

Seasonal red flags, market fragility, a China buying spree, and a potential vicious circle of selling lie behind hedge funds' reluctance to join the recent rally, Wall Street sources say.

Reuters reports:

Direct US equities holders now possess the highest amount ever, relative to their income, UBS's markets and trading desk said in a note to clients on Thursday. ... These retail traders comprise just over 40% of the U.S. stock market.

This is a reason for caution because any signs of a sharp growth slowdown that prompts equity holders to reduce spending for speculative purposes might trigger a vicious circle of stock selling, noted Erlen Capital's Schneller.

\\"The retail bid is powerful but fragile — when multiples of disposable income are being funnelled into equities, it can extend the cycle, but it also raises the risk of a sharp unwind,\\" he said.

Read more here.

This week brings just four days of trading and a crucial nonfarm-payrolls report — the first since July's dramatic revisions and an abrupt change in BLS leadership surprised investors.

The August jobs report's importance for investors is downstream of its importance for the Federal Reserve, note Yahoo Finance's Jake Conley and Myles Udland.

They report:

In a key policy speech at Jackson Hole, Fed Chair Jerome Powell signaled that the central bank is likely to begin lowering interest rates at its policy meeting in September, pointing to a \\"curious\\" US labor market. ...

Questions over the health of the US labor market appear to have pushed Powell toward backing a rate cut from the central bank, a move that had already been supported by two of his colleagues on the FOMC — a contingent that is set to grow this week, too.

The Senate Banking Committee is scheduled to hold a nomination hearing on Thursday for Stephen Miran, Trump's nominee to replace Adriana Kugler, who stepped down from the Fed board on Aug. 8.

Should Miran get through the Senate as expected, yet another voice likely to support more aggressive rate cuts will be in the room when the Fed's next policy meeting kicks off on Sept. 16.

Whether Fed governor Lisa Cook will also be in attendance remains less clear.

Read more here.

Bloomberg reports:

Gold hit a record high as the prospect of Federal Reserve rate cuts and growing concerns over the central bank’s future gave fresh legs to the multiyear rally in precious metals.

Bullion for immediate delivery rose as much as 0.9% to $3,508.73 an ounce — surpassing the previous peak reached in April — before paring some gains during early trading in Asia on Tuesday. The precious metal has gained more than 30% this year, making it one of the best-performing major commodities.

The latest run has been fueled by expectations that the US central bank will lower interest rates this month, after Fed Chair Jerome Powell cautiously opened the door to a reduction. A key US jobs report this Friday is likely to add to signs of an increasingly subdued labor market — supporting the case for cuts. That’s boosted the allure of precious metals, which do not pay holders interest.

Read more here.