U.S. stock futures suggest a mixed start on Wall Street after equities retreated in the previous session. Alphabet avoids severe sanctions in a closely watched antitrust case, with a judge ruling that Google does not need to divest its popular Chrome browser. Meanwhile, the Federal Reserve is set to release a key economic snapshot, Salesforce will report earnings after the bell, and gold briefly reached a new record high.
Mixed Futures
On Wednesday, U.S. stock futures hovered near the flatline following declines on Wall Street earlier in the week, marking the start of a holiday-shortened trading period.
By 02:58 ET, Dow futures had fallen 122 points, or 0.3%, S&P 500 futures edged up 10 points, or 0.2%, and Nasdaq 100 futures climbed 78 points, or 0.3%. Investors returned from the Labor Day holiday facing renewed uncertainty over the path of sweeping U.S. tariffs.
Sentiment was dented by a late-week U.S. appeals court decision that deemed most of President Donald Trump’s import levies illegal. The ruling, which the Trump administration plans to appeal to the Supreme Court, raised questions over the administration’s ability to use tariffs as a tool in global economic policy.
While the major indices finished off session lows, the Cboe Volatility Index, a key gauge of market fear, ticked higher.
In individual stock movements, Kraft Heinz (NASDAQ:KHC) dropped 7% after announcing plans to split into two separate businesses. Conversely, PepsiCo (NASDAQ:PEP) gained 1.1% after activist investor Elliott Management disclosed a $4 billion stake in the company.
The Dow Jones Industrial Average fell 0.6%, the S&P 500 slipped 0.7%, and the Nasdaq Composite lost 0.8%, marking a relatively subdued start to September—a month historically challenging for U.S. stocks.
Alphabet Surges on Antitrust Ruling
Alphabet (NASDAQ:GOOGL) shares jumped over 5% in after-hours trading following a federal judge’s decision that Google will not be required to sell its Chrome browser as part of remedies in the Justice Department’s antitrust case.
Judge Amit Mehta’s ruling allows Google to avoid one of the harshest potential penalties after the court previously determined the company maintained an illegal search monopoly. While Google will be restricted from entering exclusive contracts for search, the company is spared from divesting major assets.
The decision also confirmed that Google does not have to sell its Android operating system, another key victory for the tech giant. Additionally, the judge ruled that Google is not required to stop paying Apple (NASDAQ:AAPL) and other companies to preload its products. Shares of Apple also rose in after-hours trading.
The judgment, lasting six years, does require Google to share some information with competitors as a remedy for its search monopoly. “This less severe outcome than what government prosecutors had sought appears to have relieved investors.”
Beige Book Release Ahead
The Federal Reserve will publish its latest “Beige Book” on Wednesday, offering one of the last economic snapshots before the September policy meeting.
July’s report had indicated that contacts across industries expected cost pressures to “remain elevated in the coming months,” which could heighten “the likelihood that consumer prices will start to rise more rapidly by late summer.” All 12 Fed districts cited the impact of Trump’s trade policies.
The Beige Book also highlighted concerns over a potential slowdown in business activity. Uncertainty around tariffs has prompted some firms to delay major hiring and layoff decisions. More clarity on the labor market is expected this week, including the Wednesday release of the job openings survey, along with private payrolls and weekly unemployment claims, ahead of Friday’s August employment report.
Earnings Spotlight: Salesforce and Retailers
Software company Salesforce is set to report after markets close. Analysts at Vital Knowledge noted: “[S]entiment has been cautious amid concerns about AI displacement risk, although the narrative has started to shift in the favor of enterprise software in the last couple of weeks thanks to some solid earnings reports from the industry.”
Dollar Tree is also scheduled to release results, with investors watching for updates on its turnaround. Peers such as Dollar General, Target, and Walmart have recently posted “decent sales,” according to Vital Knowledge. Other companies reporting include Hewlett Packard, Campbell’s, and Macy’s.
Gold Hits Fresh High
Gold prices steadied, briefly reaching an all-time peak as concerns over global fiscal health and U.S. tariffs kept investors in safe-haven mode. Spot gold traded slightly lower at $3,530.23 an ounce, while December futures edged up 0.1% to $3,596.30/oz. Earlier in the session, spot gold hit $3,547.09/oz.
The dollar’s rebound limited further gains, recapturing much of this week’s earlier losses amid a global selloff in government bonds. Precious and industrial metals remain on solid footing for the week.
Copper Supported by China Optimism
London copper futures temporarily rose above $10,000 a ton for the first time since March, driven by optimism that demand from China, the world’s top copper importer, may strengthen.
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