The S&P 500 rose on Wednesday as Alphabet led a rebound in tech stocks after a favorable antitrust ruling. Cooling Treasury yields also boosted sentiment as weak labor data raised hopes for a Federal Reserve rate cut.
By 3:19 p.m. ET (19:19 GMT), the S&P 500 gained 0.1%, the tech-heavy Nasdaq Composite climbed 0.6%, while the Dow Jones Industrial Average slipped 237 points, or 0.5%.
Alphabet and Apple rally on court ruling
Shares of Alphabet (NASDAQ: GOOGL) jumped over 8% after a judge ruled that Google would not be forced to spin off its Chrome browser. The ruling also spared the Android operating system, both of which had been targeted in the Justice Department’s antitrust case.
Google will still need to share some search data with competitors and cannot sign exclusive promotion contracts. Even so, analysts called the outcome a major legal win. Oppenheimer raised its price target on Alphabet to $270 from $235, noting the ruling also allows Google to continue paying Apple for search distribution.
Apple (NASDAQ: AAPL) stock also advanced, supported by the continuation of Google’s multibillion-dollar payments to remain the default search engine on Safari.
Market movers
In other corporate news, Newsmax (NYSE: NMAX) filed a lawsuit against Fox News, alleging it suppressed rival right-leaning outlets.
On the earnings front, Dollar Tree (NASDAQ: DLTR) slumped despite beating Q2 forecasts, while Macy’s rallied after posting better-than-expected results.
Treasury yields ease as jobs market softens
Labor data showed job openings dropped by the most since the pandemic, signaling weaker demand for workers. The decline reinforced expectations for a Fed rate cut later this month. Treasury yields retreated, with the move seen as a pause after recent sharp gains.
Fed Governor Christopher Waller repeated his call for a September cut, warning that labor market weakness could signal deeper economic troubles. The Fed’s latest Beige Book also highlighted slowing consumer activity and fresh inflation concerns.
Earnings spotlight: Salesforce
Salesforce (NYSE: CRM) is set to report after market close. Analysts warn cracks could be forming in the AI-driven stock rally, though recent solid enterprise software results have shifted sentiment more positively.
Gold hits record high
Gold extended its rally to a record $3,633.50 an ounce, up 1.2%. Investors flocked to safe-haven assets amid fiscal concerns and ongoing U.S. trade tariff uncertainty.
