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The US stock market rebounded on Wednesday, marking the end of a two-day losing streak. Tech stocks, particularly those from Alphabet Inc. and Apple Inc., led the rally after a favorable court ruling for Alphabet. The S&P 500 Index rose by 0.4%, with five of its 11 sectors showing positive performance. The NASDAQ 100 gained 0.5%, driven by a 1.73% increase in the so-called "Magnificent Seven" tech companies.
Alphabet stocks surged by 8% to a new all-time high after a federal judge ruled in the high-profile antitrust case. The court decided that Google was free to keep its Chrome browser without risking dismantling the company.
The judge further ruled that Google was not required to stop paying partners, which enabled Google to keep its profitable arrangement with Apple. This partnership, with Google as the default search engine on iPhones, adds about $20 billion a year to Apple's annual revenue.
This ruling was a major victory for both Alphabet and Apple, as it prevented the widely expected worst-case outcome. Doug Anmuth, an analyst at JPMorgan Chase & Co., noted that the decision was more favorable for Google than expected, especially considering the increasingly competitive search landscape driven by generative AI technology.
Although tech stocks had rallied, investors were also wary because they were waiting for more economic information. The Labor Department will release the Job Openings and Labor Turnover Survey (JOLTS) report at 10 a.m. ET, and it is highly likely to shed some light on the health of the labor market.
Investors will also focus on Salesforce’s earnings report, which is due after the market closes. While Salesforce shares gained 0.9%, the company has faced significant pressure in 2025, with its stock falling by 24% amid investor concerns over its position in the artificial intelligence sector.
In addition to the JOLTS report, investors are bracing for Thursday’s ADP employment data and the more closely watched payrolls numbers due on Friday. These figures will help investors gauge the health of the job market and assess the potential impact on future Federal Reserve decisions regarding interest rates.
September has traditionally been a weak month for the US stock market, and the current month is shaping up to be no different. Scott Wren, the senior global market strategist at Wells Fargo Investment Institute, pointed out that September has been identified as the worst-performing month of the S&P 500 since 1950.
Wren cautioned that markets may become more volatile over the next few weeks, citing factors such as slower economic growth, the possible effects of tariffs, and unresolved political uncertainties.
With increasing market volatility, traders are interested in future economic signs that may affect stock prices. Investors will examine labor market data and corporate earnings reports closely to determine the general state of the economy and the future of large tech stocks.
Also Read: US Stock Market Today: Dow Jones Falls 571 Points, NASDAQ Tumbles 1.7% Amid Fiscal Concerns
