Market Overview - The U.S. stock market experienced a significant decline on September 2, with the Dow Jones dropping over 500 points, the Nasdaq falling nearly 2%, and the S&P 500 index decreasing by 1.5% [2] - The technology sector faced a collective downturn, with Nvidia dropping nearly 4% and TSMC declining about 2% [3] - September has historically been a weak month for U.S. stocks, with the S&P 500 index averaging a decline of 4.2% over the past five years and over 2% in the last decade [5] Economic Factors - Concerns over rising fiscal deficits in Europe and the U.S. have contributed to the downturn in both stock and bond markets, with the U.S. 30-year Treasury yield approaching 5% [5][8] - Analysts indicate that the high yield on 30-year U.S. Treasuries poses a significant headwind for the stock market, especially given the already elevated valuations [8] Company-Specific News - Warren Buffett expressed disappointment regarding Kraft Heinz's decision to split, which effectively undoes a major merger he orchestrated a decade ago. Following his comments, Kraft Heinz's stock plummeted by 6% [13][15] - The split will divide Kraft Heinz into two companies: one focusing on sauces and shelf-stable foods, and the other on mainstream North American products like Oscar Mayer and Kraft cheese slices [16] - Since the merger in 2015, Kraft Heinz's stock has seen a nearly 70% decline, with its market capitalization shrinking to $33 billion [16] Investment Outlook - UBS's Chief Investment Office suggests that investors underexposed to equities should consider gradually entering the market and increasing their stock exposure during downturns, with a target for the S&P 500 to reach 6,800 by June 2026 [9] - Morgan Stanley's Michael Wilson believes that the U.S. stock market will continue to rebound, supported by Federal Reserve rate cuts and strong corporate earnings [9][10]