S&P 500 and Nasdaq Rally as Alphabet Surges on Antitrust Ruling; Apple Also Gains
S&P 500 and Nasdaq rose Wednesday, powered by Alphabet and Apple after a favorable antitrust ruling. Macy’s and Zscaler also posted strong gains as investors look ahead to U.S. jobs data.
Traders at the New York Stock Exchange on August 29, 2025, as Alphabet and Apple stocks surge following a major antitrust ruling.
Following a positive court decision in Alphabet's antitrust case, which improved investor sentiment, U.S. markets ended the day higher on Wednesday, driven primarily by tech stocks.
Strong increases in technology shares helped the Nasdaq Composite rise 0.8% and the S&P 500 rise 0.4%. However, the Dow Jones Industrial Average fell 32 points, indicating industrial weakness.
Apple and Alphabet Fuel Technological Advancements
After a federal judge decided that Google could keep its Chrome browser but prohibited it from negotiating exclusive search agreements and mandated that it share search data, Alphabet's (Google's parent company) stock shot up almost 6%. Investors viewed the outcome as a relief because it prevented a forced split.
In a deal worth billions of dollars a year, the ruling also permits Apple to keep preloading Google Search on iPhones. Following the news, Apple's stock increased by nearly 3%. According to analysts, the ruling paves the way for the two tech behemoths to form deeper AI collaborations.
Outlook on Wall Street
Barclays and JPMorgan, two investment banks, increased their price targets for Alphabet; JPMorgan predicted a possible 23% increase. The court's reasoning recognized the increasingly competitive search landscape fueled by generative AI, according to analysts.
Additional Market Movers
- After exceeding Q2 earnings projections and improving its full-year outlook, Macy's saw a more than 13% increase in value.
- Following the release of better-than-expected quarterly results and optimistic guidance, Zscaler saw a 2% increase in value.
- After exceeding earnings forecasts, Campbell Soup saw a premarket increase of more than 2%, but it issued a warning about impending profit pressure from tariffs.
Global Market Trends
Asian markets ended mixed as trade and tariff concerns weighed on sentiment. Hong Kong’s Hang Seng and China’s CSI 300 both fell, while South Korea’s Kospi and India’s Sensex and Nifty 50 posted modest gains. In Europe, the Stoxx 600 advanced, tracking positive U.S. futures.
What Comes Next?
The August U.S. jobs report, which is due on Friday, is now anticipated by investors. It will be a crucial test for markets that are already struggling with seasonal volatility, higher bond yields, and tariff uncertainties. With an average return of -0.7% since 1950, September has historically been the S&P 500's weakest month.
