Alphabet, Apple Lead Early Surge on Court Ruling

September 3, 2025 • Joe Mazzola
A judge's ruling allowing Alphabet to keep its Chrome browser lifted tech stocks including Apple early today, but rising yields and volatility are headwinds, with jobs data ahead.
Schwab Market Update

Published as of: September 3, 2025, 9:10 a.m. ET

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00:000
The marketsLast priceChange% change
S&P 500® index

6,415.54

-44.72

-0.69%

Dow Jones Industrial Average®

45,295.81

-249.07

-0.55%

Nasdaq Composite®

21,279.63

-175.92

-0.82%

10-year Treasury yield

4.27%

+0.02

--
U.S. Dollar Index

98.32

-0.73

-0.08%

Cboe Volatility Index®17.30
+0.13

+0.76%

WTI Crude Oil

$64.26

-$1.33

-2.03%

Bitcoin

$111,915

+$530

+0.48%

Disclosure

Major index values are as of Tuesday's close; others are as of 8:45 a.m. ET.

(Wednesday market open) Slumping mega caps recharged as Alphabet (GOOGL) climbed nearly 6% on a positive court decision that also lifted shares of Apple (AAPL) and helped revive major indexes after Tuesday's weak outing. The federal court ruled that Google can keep its Chrome browser but can't forge exclusive contracts and must share search data. Many had expected Google to lose Chrome after the judge earlier ruled it held an illegal search monopoly, so this news removes a dark cloud that long shadowed tech.

Job openings data await soon after the open, and Salesforce (CRM) later today will be among the last major firms to report results in a solid earnings season for Wall Street. Some of the earnings-driven rally faded in Tuesday's Wall Street retreat, hurt by concerns that a court ruling against President Trump's tariffs could raise U.S. debt if tariff revenue gets refunded.

On a related note, the Treasury curve steepened and the U.S. 30-year yield touched 5% today, reflecting a higher "term premium" investors demand to hold onto longer-dated Treasuries amid fiscal worries. This week's rise in U.S. and global yields—reflecting fiscal and tariff concerns here and abroad—could potentially hinder any attempt by major indexes to regain last week's record highs. Volatility also remains elevated from recent levels, another possible challenge for stocks.

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Three things to watch

  1. Labor data in focus: The July Job Openings and Labor Turnover Survey (JOLTS) due at 10 a.m. ET today could set the tone counting down to Friday's August nonfarm payrolls report. Investors are preparing for more cracks in the job foundation. "The unemployment rate is expected to rise to 4.3%, which would break a streak of 15 straight months where it's held between 4% and 4.2%," said Collin Martin, director, fixed income strategy at the Schwab Center for Financial Research. "A rate cut in September seems likely regardless of the strength or weakness in Friday’s labor market report, but it can have implications for policy down the road." Analysts expect job openings of around 7.4 million, near the June figure, and August jobs growth of 78,000, barely above July's lackluster tally. As of this morning, there was a nearly 92% chance of a September Federal Reserve rate cut, according to the CME FedWatch Tool. There are high odds of at least one more rate cut this year after that, but a strong jobs report Friday might lower them. Fed Governor Christopher Waller told CNBC this morning he wants a cut this month to respond to a softer labor market.
     
  2. Tariff barometer after court ruling: Last Friday's anti-tariff court ruling is just a first step. The Supreme Court might ultimately decide the issue, and even if it rules against Trump, the Republican-controlled Congress or the administration could find a way to reinstate at least some tariffs. Trump plans to ask for an expedited decision by the highest court. However, if all tariffs affected by Friday's ruling went away it would likely cut the tariff rate by about half, according to Bloomberg, possibly a pleasant surprise for many U.S. companies. The ruling applies to Trump's "Liberation Day" tariffs and extra levies on Mexico, China, and Canada that Trump said reflect the U.S. fentanyl crisis, Bloomberg noted. Tariffs on cars, car parts, steel, aluminum, and copper would remain in place even if the Supreme Court strikes down Trump's other tariffs. "The president does have other mechanisms by which he can impose tariffs, though with significantly more limitations on the scope and timing," said Michael Townsend, managing director, legislative and regulatory affairs at Schwab, in his latest Washington analysis.
     
  3. Auspicious August for small caps: The Russell 2000® Index (RUT) of smaller stocks outpaced other major indexes with a nearly 7% rise in August as rate cut odds supported a move into smaller names. Generally, companies with less market capitalization depend more on borrowing, and lower rates can reduce their costs. Also, if rates fall, that might help inject some vigor into the long languishing housing market. That would presumably raise mortgage demand and support smaller banks that are heavily represented in the Russell 2000. Recent health care and financial sector strength supported the Russell as well, and breadth has been positive, meaning no single aspect of the index has left all the others behind. Still, investors should be careful. About 40% of the index consists of unprofitable firms or "zombie" companies unable to pay interest on their debt, and any move away from anticipated Fed easing would likely hurt. The Fed's Beige Book of regional economic conditions due this afternoon could offer insights into some of the challenges smaller U.S. companies face.

On the move

  • Apple surged nearly 4% ahead of the open on the court ruling in favor of Alphabet. The decision also means that Apple can continue to preload Google Search onto its iPhones, a $20 billion annual revenue stream for Apple. One reason Apple has slumped this year was fear it would lose that revenue.
     
  • Magnificent Seven stocks flagged Tuesday as the semiconductors sector fell 1.5% and other tech stocks also lost ground. CoreWeave (CRWV), a cloud computing firm, suffered double-digit losses Tuesday reflecting insider sales after its initial public offering (IPO), Barron's reported.
     
  • Kraft Heinz (KHC) plunged nearly 7% Tuesday on news it will break into two companies that will "separate hot dogs from ketchup," NPR quipped. The two companies had merged in 2015, but shares are down 70% since then.
     
  • Tech stocks that suffered sharp losses yesterday included chip equipment maker ASML (ASML), Super Micro Computer (SMCI), and Nvidia (NVDA), though the AI chip giant finished off its lows. Palantir (PLTR), which fell early Tuesday, rebounded to finish green but is down sharply over the last month.
     
  • Salesforce fell 1.3% yesterday ahead of today's earnings but ticked up this morning. The company has cut its customer support staff by 4,000 positions after deploying AI agents to handle a growing share of its work, the San Francisco Chronicle reported. In today's earnings report, subscription growth remains a key factor to watch for demand trends. Analysts expect Salesforce to report earnings of $2.78 per share.
     
  • Cytokinetics (CYTK) rose 40% yesterday after investors got optimistic about the biotech firm's experimental heart drug aficamten, Barron's reported. The company unveiled positive trial data at a weekend conference in Europe.
     
  • Constellation Brands (STZ) fell another 0.5% this morning after a 6.6% loss yesterday. The firm cut its earnings guidance due to weak beer demand.
     
  • Figma (FIG) climbed nearly 2% in pre-market trading ahead of earnings later today. This is the first earnings report since it became a public company.
     
  • Tesla (TSLA) dropped more than 1% Tuesday amid concerns about weak international sales of its vehicles, but then jumped 1.6% today. Demand in India appeared light since the company launched there in mid-July, Bloomberg reported. Lucid (LCID) also fell Tuesday, in its case double digits as the company completed its one-for-10 reverse stock split, Barron's noted.
     
  • Bitcoin futures (/BTC) rebounded yesterday from recent weakness but remain down sharply from last month's high. Crypto-related stock Strategy (MSTR) rose along with bitcoin, but Circle Internet Group (CRCL) plunged nearly 9% Tuesday as weakness in shares continued. It's now down about 27% over the last month.
     
  • Ford (F) and General Motors (GM) both edged lower today as investors braced for data on U.S. August motor vehicle sales.
     
  • Macy's (M) jumped 12% ahead of the open. The company's results beat analysts' earnings and revenue expectations, and it guided for revenue above consensus in fiscal 2026.
     
  • Dollar Tree (DLTR) slipped 5% early today despite earnings that beat expectations. A downbeat outlook for the current quarter hurt shares, MarketWatch reported.
     
  • U.S. crude oil futures (/CL) dropped more than 2% early today after Reuters reported that this weekend's OPEC meeting could include an output hike.
     
  • The S&P 500 index, which dipped early Tuesday to three-week lows near 6,360 and below the key 20-day moving average of 6,421, clawed almost all the way back to that chart line by Tuesday's close amid what appeared to be more "buy the dip" trading. The 20-day line is a level worth eying today.

More insights from Schwab

Is housing nearing a bottom? An affordability crisis persists and sentiment is down, but there are "glimmers of hope," said Schwab Chief Investment Strategist Liz Ann Sonders and Senior Investment Strategist Kevin Gordon in their new analysis on the U.S. housing market. These include rising supplies and a bit of a rollover in prices. 

When fate comes knocking: Life is unpredictable, and unexpected events like a job loss or an illness can upend your finances. Having a financial plan in place can help you navigate the shifting sands. Learn five actions you can take to keep your finances on track when crises strike in this Schwab's new financial planning article.

Options in focus: Short strangles and straddles are an advanced strategy some traders use in an effort to generate income during times of sideways market action. But the risks involved are hefty. Learn more in a new explainer from Schwab's experts.

Chart of the day

The S&P 500 Equal Weight index is up just 5.95% over the last three months, trailing the S&P 500 index, which is up 8.08%. The equal weight index did outpace the S&P 500 index in August for the first time after four months of falling behind it.

Data source: S&P Dow Jones Indices, Nasdaq. Chart source: thinkorswim® platform.

Past performance is no guarantee of future results.
For illustrative purposes only.

The S&P 500 Equal Weight index (SPXEW—candlesticks) is up just under 8% over the last three months, trailing the S&P 500 index (SPX—purple line), which is up more than 8%. Still, the equal weight index outpaced the S&P 500 index in August for the first time after four months of finishing underneath it, a sign that the long rally has begun to broaden and isn't quite so dependent on the mega-cap stocks that help elevate the market-cap weighted SPX.

The week ahead

Check out the Investors' Calendar for a summary of the top economic events and earnings reports on tap this week.

September 4: August ADP Employment, August ISM Services PMI®, and expected earnings from Ciena (CIEN), Broadcom (AVGO), and lululemon (LULU).
September 5: August Nonfarm Payrolls, August unemployment.
September 8: Expected earnings from Casey's General Stores (CASY).
September 9: Expected earnings from Synopsys (SNPS).
September 10: August Producer Price Index (PPI) and core PPI and expected earnings from Chewy (CHWY).

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