US stocks rally as Alphabet and Apple jump after court victory

(Bloomberg/Felice Maranz) — US stocks advanced on Wednesday, snapping a two-day losing streak as tech megacaps recovered thanks to a court victory for Alphabet Inc. and Apple Inc.

The S&P 500 Index climbed 0.4%, with five of 11 sectors in the green. The Nasdaq 100 Index rose 0.5%, while a gauge of Magnificent Seven companies jumped 1.73%. The Cboe VIX Index was around 17. The 10-year Treasury yield was 4.26%.

Google dodged a breakup that would have included selling its Chrome browser after a judge ruled against the government’s toughest proposals in the biggest antitrust case in three decades. The decision was also a big win for Apple, as Google will still be allowed to pay its partners. Apple gets about $20 billion a year for making Google search the default on iPhones. Alphabet shares rallied 8%, touching a record high; Apple rose 2%.

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The court’s remedies “were much more favorable for Google than anticipated,” JPMorgan Chase & Co. analyst Doug Anmuth said. He also noted that the judge “took into account the rapidly evolving and increasingly competitive search landscape spurred by GenAI.”

Investors await JOLTS job openings at 10 a.m. and will be tracking Salesforce Inc.’s results, due after the close. Shares of the software giant advanced 0.9%; they’ve tumbled about 24% this year, as investors see the company “firmly in the AI loser camp,” according to Mizuho Securities.

Dollar Tree Inc. sank 7.9% after reporting second-quarter results marred by issues surrounding inventories and the impact from tariffs. Macy’s Inc. soared 20% after raising its annual outlook and reporting its best comparable sales growth in three years.

Later this week, more labor-market data will be under scrutiny. On Thursday, watch for ADP’s employment report, while Friday’s payrolls numbers are a key market focus. Broadcom Inc. reports earnings on Thursday.

Federal Reserve Governor Christopher Waller earlier said the US central bank should begin lowering interest rates this month and make multiple cuts in the coming months. He also said tariffs weren’t going to cause long-run inflation, and expressed a desire to get ahead of a softening labor market.

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