It was a cheery mid-morning in global markets on Wednesday, 3 September 2025, as both the S&P 500 and Nasdaq prepared for a strong opening. The trigger? A big lift from Alphabet, following a landmark antitrust court ruling that relieved investors. All the while, the markets held their breath for vital job data due soon—and that double-dose of optimism had a ripple effect across Wall Street.
In pre-market trading, futures linked to the S&P 500 rose by about 0.35 per cent, while Nasdaq futures surged approximately 0.66 per cent. Meanwhile, Dow Jones futures lagged slightly, dipping around 0.2 per cent.
The biggest story of the hour was Alphabet’s rebound. Shares shot up roughly 7 per cent after a Washington court ruled the company could keep its Chrome browser—but must share select search data and shed some exclusive contracts. The decision eased investor anxiety over a potential break-up.
Apple wasn’t left behind in the rally. Its stock climbed around 3.4 per cent, buoyed by clarity on its deal with Google and continued payments.
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Investor Relief Amid Alphabet Ruling and Fed Watch
Market watchers were quick to note that the ruling spared Alphabet from extreme remedies. As Sam Stovall, a chief investment officer at CFRA Research, put it: “We are not seeing the injection of tremendous confusion if Alphabet were required to sell off its browser or make some changes with its arrangement with Apple.” That relief is helping tech shares writ large breathe easier.
With the Federal Reserve in focus after Chair Powell’s Jackson Hole remarks, any signs of labour-market weakness could fire up expectations of a September rate cut—currently priced in at a steep 91.2 per cent chance.
Jobs on Tap: JOLTS and Nonfarm Payrolls Loom Large
Traders weren’t just cheering Alphabet—they were closely watching the labour front. The July Job Openings and Labor Turnover Survey (JOLTS) was scheduled for release that same morning in the US. It represents the first in a series of labour indicators culminating in the closely awaited nonfarm payrolls report on Friday.
Last month’s payrolls data had come in weak, and preceding revisions pointed further downward—fueling speculation that Labour softening would pave the way for an imminent rate cut.
If this week’s job figures disappoint again, markets may gain even more confidence in looser monetary policy. But if they surprise on the upside, that could dampen hopes of a September cut in interest rates, according to Reuters.
Long-Term Yields and Fiscal Jitters Weigh, But Sentiment Holds
Not all headlines were bullish, though. Long-dated Treasury yields climbed sharply, as a court ruling invalidating much of Trump-era tariffs raised concerns about US fiscal health. The yield on the 30-year US Treasury note even hit 5 per cent briefly before retreating to around 4.97 per cent.
That uptick in yields can pressure equities, as higher borrowing costs make future earnings less valuable. Indeed, September has a reputation for being a rough month for US stocks; on average, the S&P 500 loses around 1.5 per cent during this month.
Yet there was some optimism on the horizon. HSBC upgraded its year-end target for the S&P 500 to 6,500, up from 6,400 previously, citing strong earnings and relatively modest tariff impacts.
On the earnings front, Macy’s shares soared 12.5 per cent after boosting its annual forecast. Discount retailer Dollar Tree, however, dipped 6.8 per cent despite also revising its outlook upward. Meanwhile, cloud-security firm Zscaler rose after projecting stronger-than-expected annual revenue.
Fed speakers Neel Kashkari and others were also slated to speak later in the day—any sign of dovishness could further fuel market optimism.
Summary Table
| Theme | Key Highlights |
|---|---|
| Tech Surge | Alphabet +7%; Apple +3.4% after court ruling |
| Futures Performance | S&P 500 +0.35%, Nasdaq +0.66%, Dow −0.2% |
| Labour Data Watch | JOLTS today; NFP due Friday |
| Rate Cut Odds | 91.2 % priced in for September Fed cut |
| Bond Market | 30-yr Treasury yield ~5%; fiscal pressure rising |
| Outlook | HSBC lifts S&P 500 target; mixed retailer earnings; Fed speeches ahead |
Conclusion: A Breath of Relief, With Labour Data in the Driver’s Seat
All told, Wednesday’s trading setup felt like a refreshing deep breath after a turbulent start to the month. The buzz from Alphabet’s court victory lent welcome support to tech and broader indices, giving markets a positive spin as investors waited for key economic data.
However, the fate of the rally now hinges on the labour indicators — if job openings and payrolls show deeper softening, that would likely bolster hopes for a Fed rate cut in September. On the flip side, stronger-than-expected numbers could give markets pause.
Meanwhile, the rising trend in long-term yields signals lingering caution over fiscal sustainability—especially with global borrowing costs reaching multi-year highs in places like the UK, Japan, and Germany.
But at least for today, tech is firing, futures are pointing up, and all eyes are fixed on the jobs data ahead.
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