Alphabet skips antitrust hit, fuels tech bulls 03/09/2025

HOT stories for today

US market wrap:

• U.S. equities ended Tuesday in the red, as market participants digested fresh trade-related news at the onset of what is historically a sluggish month for stocks. Climbing bond yields added to investor unease. The Dow Jones Industrial Average declined by 0.55%, while the S&P 500 retreated 0.69% and the Nasdaq Composite slipped 0.82%. With the informal close of the summer season, traders locked in gains from high-performing stocks during the bull run. Nvidia, for instance, fell roughly 2%, and other tech giants such as Amazon and Apple lost close to 1% each.
• The downturn followed a ruling by a federal appeals court last Friday, which deemed the majority of Trump-era global tariffs unlawful. Meanwhile, investors kept a close watch on a sharp uptick in bond yields as September began. The 10-year Treasury yield surged to 4.27%, and the 30-year yield climbed even higher. In parallel, gold soared to a new record, surpassing 4.97%.

Alphabet and Apple Stocks Rise After Google Antitrust Ruling

• Google avoided a major breakup as a judge ruled it can keep Chrome and continue paying Apple to make Google Search the default on its devices. However, Google must end exclusive contracts and limit deals to one year. Apple retains its $20B annual revenue stream and gains leverage for future search partnerships.
• The ruling also allows competitors to use Google’s search data, potentially opening doors for AI-driven alternatives. Analysts say the decision lifts uncertainty over both stocks, though further legal challenges may follow. Google plans to appeal.

Stocks on the move:

• Frontier Group (ULCC):  Shares of the low-cost airline climbed over 13% after competitor Spirit Airlines declared bankruptcy on Friday.
• Humana (HUM): The health insurance provider’s stock advanced more than 2% following its reaffirmation of fiscal 2025 profit projections. The company still anticipates adjusted earnings of roughly $17 per share. After the update, Bank of America boosted its price target but maintained a neutral outlook on the equity.
• United Therapeutics (UTHR): The biotech firm’s stock surged 35% after reporting that its TETON-2 trial of nebulized Tyvaso (treprostinil) Inhalation Solution for treating idiopathic pulmonary fibrosis successfully achieved its primary efficacy goal.
• Constellation Brands (STZ): Shares dropped 7% after the beverage company lowered its full-year earnings outlook. The new range is $10.77–$11.07 per share, compared with its previous guidance of $12.07–$12.37 per share.

Watchlist: GOOG, AAPL, DLTR, M, CRM, FIG, NVDA, RBLX, ZS

Today’s action

• Asia-Pacific equities mostly retreated on Wednesday as traders weighed climbing global bond yields alongside fresh trade developments. Chinese markets drew attention after President Xi Jinping delivered remarks during a military parade commemorating the 80th anniversary of the end of World War II. The ceremony was attended by 26 world leaders, including Russian President Vladimir Putin and North Korean leader Kim Jong Un. Hong Kong’s Hang Seng Index (HSI) slipped 0.4%, while mainland China’s CSI 300 (CSI300) lost 0.89%.
• In U.S. premarket trading, stock futures moved modestly higher after a federal court ruling in an Alphabet (GOOGL) antitrust case boosted optimism that large tech firms can withstand regulatory challenges. S&P 500 futures edged up 0.07%, while Nasdaq-100 futures advanced 0.23%. Contracts linked to the Dow Jones Industrial Average fell 145 points, or about 0.32%. Market participants are also awaiting Friday’s release of the August employment report, considered the next key gauge for equities.

Bitcoin

• Will crypto overcome the so-called “Red September” jinx? Sentiment in the digital asset space is cautiously upbeat. The overall cryptocurrency market advanced 1.2% today, pushing its capitalization back to roughly $3.9 trillion. By contrast, traditional equities stumbled.
• Put differently, crypto once again demonstrated resilience in the face of tariff uncertainty and seasonal market headwinds. Bitcoin (BTC-USD), Solana (SOL-USD), and XRP (XRP-USD) each notched gains of around 2%, setting a guardedly bullish tone as traders maneuver through what has historically been crypto’s most turbulent month.
  Watchlist: Bitcoin: 99 000-125 000, Ethereum: 4000-4980, Solana: 160-214
   

Forex

• USD/JPY climbed back near 149.00 in Asia trade as the Japanese Yen (JPY=) stayed weak amid political uncertainty and lack of hawkish BoJ signals. Diverging Fed-BoJ outlooks add caution ahead of key U.S. data.
• The EUR/USD slid to 1.1620, extending losses for a second consecutive day ahead of the Eurozone and German HCOB PMI releases. Rising U.S. Treasury yields boosted the dollar, while European long-term yields hit multi-year highs, French 30-year at 4.5% (since 2009), and German 30-year at 3.41% (since 2011).
  Watchlist: EUR/USD: 1.0700-1.1700, USD/JPY: 140-151
   

Basic Materials

• Gold (XAU/USD) hit a fresh record near $3,546–3,547 in Asia, supported by Fed rate cut expectations and trade uncertainty. Safe-haven flows underpin the rally, though overbought conditions and a firmer U.S. Dollar (DXY) limit upside momentum.
• WTI Crude (CL=F) edged up to $65.30, buoyed by supply risk from the Russia-Ukraine conflict. However, U.S. tariffs on Indian goods raise demand concerns, capping gains.
  Watchlist: GOLD: 2600-3550, US Oil: 55.60-75.80

Key Economic Events Today:

EST time

09:00 am: USD FOMC Member Musalem Speaks
10:00 am: USD JOLTS Job Openings
10:00 am: USD Factory Orders
01:30 pm: USD FOMC Member Kashkari Speaks
 

Earnings

BMO (Before Market Open):

DLTR                Dollar Tree Inc.
CPB                  The Campbell1s Company
M                      Macy’s Inc. 

AMC (After Market Close): CRM, FIG, HPE

The TEFS Analyst team wishes you a successful day!