S&P 500 and Nasdaq Futures Climb on Google Ruling Amid Tariff Concerns
Alphabet shares jump 7.1%, Apple rises 2.8%, Dow futures fall 0.2% after antitrust ruling.
Wall Street weak amid tariff ruling, Supreme Court appeal, and cautious investors ahead of payrolls.
S&P 500 down 0.7%, Nasdaq down 0.8%; bond sell-off raises yields; futures mixed.
S&P 500 and Nasdaq Futures Rise on Softer Antitrust Ruling
S&P 500 and Nasdaq futures climbed modestly on Tuesday evening, fueled by strong gains in Alphabet Inc. (NASDAQ: GOOGL) after a court handed down a less stringent antitrust ruling than initially feared. Alphabet’s shares surged 7.1% in after-hours trading as the judge permitted the company to retain its Chrome browser and Android operating system, rejecting the Department of Justice’s demand for divestiture.
Apple Inc. (NASDAQ: AAPL) also saw a 2.8% rise in shares after the ruling allowed Google to continue paying Apple billions to make Google the default search engine on Safari browsers. Despite these gains, Dow futures declined by 0.2%, reflecting overall cautious investor sentiment amid a shaky start to September.
Wall Street Weighed Down by Trade Tariff Uncertainty
Wall Street experienced a weak session on Tuesday, influenced by growing uncertainties over U.S. trade tariffs following a federal appeals court’s recent decision invalidating President Donald Trump’s tariffs and ordering their suspension by October 14. Trump’s administration announced plans to appeal the ruling to the Supreme Court, which could lead to a prolonged legal battle over the imposed tariffs that range from 10% to 50% on several key U.S. trading partners. A negative verdict on these tariffs may force Washington to renegotiate several recent international trade agreements, potentially disrupting global commerce.
Investor caution was further heightened ahead of expected payroll data releases this week. Historically, September has been a weak month for equities following August’s gains.
Market Impact on Indices and Bonds
On Tuesday, the S&P 500 Index fell by 0.7% to 6,415.54 points, while the NASDAQ Composite slid 0.8% to 21,279.63 points. The Dow Jones Industrial Average dropped 0.6% to 45,295.69 points. Meanwhile, bond markets reacted to the court’s tariff ruling with notable sell-offs in U.S. Treasuries, particularly affecting longer-dated notes, pushing yields higher across the curve.
The S&P 500 Futures were up 0.1% at 6,434.0 points and Nasdaq 100 Futures increased by 0.2% to 23,328.75 points as of 19:22 ET (23:22 GMT), but Dow Jones Futures declined 0.2% to 45,269.0 points. The antitrust case’s final judgement is scheduled for September 10.
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