Wall Street staged a notable rebound this week, as U.S. stocks climbed on a wave of optimism powered by tech giants Alphabet and Apple, following their recent court victory in a high-profile antitrust case. The rally, which snapped a two-day losing streak for major indexes, came amid shifting economic signals and mounting anticipation for a key jobs report that could determine the Federal Reserve's next move on interest rates.
On Wednesday, September 3, 2025, the S&P 500 Index closed 0.5% higher, with four of its eleven sectors finishing in the green, according to Bloomberg. The tech-heavy Nasdaq Composite led the charge, gaining 1.03% to end at 21,497.73. Meanwhile, the Nasdaq 100 Index rose 0.8%, and a gauge of the so-called "Magnificent Seven" tech companies jumped 2.2%. In contrast, the Dow Jones Industrial Average lagged, slipping 24.58 points, or 0.05%, to 45,271.23—its third straight loss, as reported by The Associated Press and MarketWatch.
The surge was largely attributed to a federal court decision that favored Alphabet, Google's parent company, in a closely watched antitrust case. The ruling allowed Google to retain its Chrome browser, but imposed restrictions: the company cannot strike exclusive search deals and must share its search data. This outcome was seen as a relief for investors, who had feared more severe penalties that could have upended the tech giant's business model. As a result, Alphabet shares soared 9.1% on the day, with Apple not far behind, climbing 3.8%.
"This was clearly a clearing event for GOOGL shares, and we continue to like the stock," Mark Mahaney, head of internet research at Evercore ISI, told CNBC's "Squawk on the Street." He added, "This distraction is behind us. Now, you can focus on the fundamentals, and valuation, I think, is still highly attractive."
For Apple, the decision was equally consequential. The ruling means the company can continue preloading Google Search onto its iPhones—a lucrative arrangement that reportedly brings Apple an estimated $20 billion annually in revenue-sharing from Google, as noted by MarketWatch. This continued partnership reassured investors, especially as Apple faces its own antitrust scrutiny.
While tech stocks basked in the glow of legal relief, other sectors weren't as fortunate. Energy stocks posted their steepest decline since June, as oil prices tumbled on reports that OPEC+ may consider production increases at an upcoming weekend meeting. Bank shares also weakened, reflecting persistent worries about a slowing economy and rising bond yields.
Adding to the economic uncertainty, the latest job openings data showed a decline to levels not seen since the early days of the Covid pandemic. This development, highlighted by CNBC, placed even greater importance on the August jobs report due Friday, September 5, 2025. Investors and policymakers alike are closely watching for signs of labor market strength—or weakness—that could influence the Federal Reserve's approach to interest rates.
On Thursday, September 4, 2025, Wall Street continued its upward momentum, with hopes growing for an imminent cut to interest rates. The S&P 500 rose another 0.4%, clawing back more of its losses after setting an all-time high the previous week, according to the Associated Press. The Dow Jones gained 193 points, or 0.4%, and the Nasdaq composite was also up 0.4% by early afternoon trading.
This optimism was fueled by falling Treasury yields, with the 10-year note dropping to 4.17% from 4.22% the day before. The decline followed a series of reports suggesting the U.S. job market is cooling: private employers nearly halved their hiring last month, and more workers applied for unemployment benefits, signaling a rise in layoffs. However, these numbers stopped short of indicating a full-blown recession. A separate report showed unexpected strength in business activity for information and other service industries, complicating the economic picture.
"The year started with strong job growth, but that momentum has been whipsawed by uncertainty," said Nela Richardson, chief economist at ADP, as cited by the Associated Press. She pointed to factors such as labor shortages, cautious consumers, and disruptions from artificial intelligence as possible contributors to the slowdown.
Investors are now laser-focused on the comprehensive August jobs report, set to be released Friday by the U.S. Labor Department. The outcome could sway the Federal Reserve's decision at its next meeting, with many hoping for the first interest rate cut this year. Lower rates generally provide a boost to both the economy and the stock market, though they can also stoke inflation—a risk the Fed has been keenly aware of, particularly in the wake of President Donald Trump's tariffs.
Not all companies shared in the week's gains. Salesforce, despite posting better-than-expected profits, saw its shares fall 5.6%, with analysts attributing some of the performance to one-time factors. C3.ai dropped 3.5% after reporting a larger-than-expected loss and announcing a new CEO, Stephen Ehikian, formerly acting administrator of the U.S. General Services Administration. Figma tumbled 18.2% despite meeting earnings expectations, as investor hopes had been set even higher after its stock more than doubled since its July IPO.
On the flip side, American Eagle Outfitters surged 35.1% after reporting quarterly profits more than double what analysts had forecast. The retailer benefited from a media frenzy over an advertising campaign featuring actor Sydney Sweeney, which sparked national debate about beauty standards and political backlash. Hewlett Packard Enterprise rose 3.4% on strong earnings, while T. Rowe Price climbed 5.9% after announcing a $3.5 billion stock deal with Goldman Sachs, which itself gained 1.4%.
Globally, stock markets painted a mixed picture: Shanghai and Hong Kong indexes dropped by 1.3% and 1.1%, respectively, while Tokyo's market jumped 1.5% on Thursday, as reported by the Associated Press.
Market strategists caution, however, that September has historically been a weak month for U.S. equities. Scott Wren, senior global market strategist at Wells Fargo Investment Institute, reminded investors that since 1950, the S&P 500 has averaged a 0.7% loss in September. "Stocks are entering September with a time out from the recent calm," Wren told CNBC. "Market volatility should increase, especially equities and short- & long-term fixed income, while economy slows, tariff impacts arrive piecemeal, and political uncertainties continue."
As the week draws to a close, all eyes remain fixed on the upcoming jobs data and the Federal Reserve's response. For now, though, Wall Street's tech titans have given investors a reason to cheer, even as the broader economic outlook remains clouded by uncertainty and the perennial September jitters.
