US stocks close on the low as the post-Labor Day pattern continues

Major U.S. stock indices closed near session lows on Tuesday, continuing a historical seasonal trend marked by the 10th consecutive year of losses on the trading day immediately following the Labor Day holiday. The broad-market benchmark S&P 500 dropped 0.6%, falling within historical seasonal norms, while the Dow Jones Industrial Average underperformed with a 1.2% decline. The tech-heavy Nasdaq Composite and the small-cap Russell 2000 also finished in negative territory, both shedding 0.3% on the day. Market weakness was predominantly driven by renewed apprehension surrounding artificial intelligence valuations and broad declines across the healthcare space. Major AI semiconductor bellwether NVIDIA fell 2.1%, while healthcare names faced severe headwinds, led by Amgen's steep slump of nearly 10% alongside broader sector weakness of 2% to 3%. Conversely, selective resilience was observed in energy companies and select semiconductor and tech stocks, including Tesla, Intel, AMD, and Broadcom, which outperformed the broader market downward trend.