The S&P 500 rose Wednesday, lifted by gains in tech shares after a federal court ruling in Alphabet’s antitrust case eased fears over the regulatory outlook for the sector.
The S&P 500 climbed 0.4% on Wednesday, while the Nasdaq Composite gained 0.8% as strength in technology shares lifted sentiment.
The Dow Jones Industrial Average underperformed, slipping 32 points.
Shares of Google parent Alphabet jumped 7% in early trading after a federal judge ruled Tuesday that the company can keep its Chrome browser but will not be allowed to strike exclusive search deals and must share some search data.
The decision, which avoided the most severe penalties, also reflected the view that artificial intelligence has broadened consumer choice in search.
Apple also benefited from the ruling, with the AAPL stock climbing more than 3%.
The decision allows the iPhone maker to continue preloading Google Search on its devices, a lucrative arrangement at a time when Apple is also fighting its own antitrust case.
The rebound was concentrated in tech, leaving the less tech-heavy Dow relatively flat, while energy and bank stocks lagged on worries over slowing growth and higher bond yields.
The broader market is coming off a weak start to September after Tuesday’s declines, when profit-taking and a spike in Treasury yields weighed on sentiment.
Bond yields jumped Tuesday as traders digested last week’s federal appeals court ruling that many of President Donald Trump’s tariffs are illegal, raising the prospect of the US having to refund billions in collected revenue.
Google’s escape
Google appeared to have fared better than expected in its long-running antitrust case after a US court ruling late Wednesday.
District Judge Amit Mehta ruled that the company can continue operating its Chrome browser but barred it from entering into exclusive contracts and ordered it to share certain search data.
The decision comes nearly a year after Mehta found that Google maintained a monopoly in internet search.
Shares of Alphabet, Google’s parent, jumped more than 5% in premarket trading following the ruling.
Apple stock also rose in extended trading, buoyed by the outcome, as the iPhone maker receives billions of dollars annually from Google to remain the default search engine on its devices.
Trump tariffs in legal battle
President Donald Trump said Tuesday he will seek an “expedited ruling” from the US Supreme Court to overturn the federal appeals court decision that struck down most of his tariffs.
Trump told reporters the appeal could be filed as soon as today, warning that without his tariff program, “the financial fabric of our country” is at risk and that the US could “end up being a third-world country.”
Separately, a federal judge on Tuesday blocked the Trump administration from deploying the National Guard and military to enforce laws in California, marking another setback for the White House on the legal front.
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