Nasdaq, S&P 500 end higher with Alphabet, Apple, rate-cut hopes; Dow dips
The Nasdaq and S&P 500 ended higher on Wednesday, as Alphabet jumped after a U.S. judge ruled against breaking up the Google parent and as investors were optimistic that the Federal Reserve would cut interest rates this month.
The Dow finished lower.
Shares of Alphabet rose after the late Tuesday ruling, which allows Google to retain control of its Chrome browser and Android mobile operating system, while barring certain exclusive contracts with device makers and browser developers. Shares of Apple also gained as the ruling also preserved lucrative payments to the iPhone maker from Google.
Two Fed officials said labor market concerns continue to animate their belief that rate cuts lie ahead. Fed Governor Christopher Waller said he thinks the central bank should be cutting at its next meeting. Atlanta Fed President Raphael Bostic reiterated his view that a rate cut is in the cards, although he did not say how soon it might happen. The Fed meets later this month.
According to preliminary data, the S&P 500 gained 31.41 points, or 0.49%, to end at 6,446.95 points, while the Nasdaq Composite gained 216.42 points, or 1.02%, to 21,496.05. The Dow Jones Industrial Average fell 33.64 points, or 0.07%, to 45,262.17.
Earlier, a Labor Department report showed U.S. job openings fell more than expected in July and hiring was moderate, consistent with easing labor market conditions.
Traders are now pricing in a 95.6% chance of a September rate cut, per CME Group's FedWatch tool, compared with nearly 92% before the data.
Investors were anxious to see Friday's monthly jobs report.
Source : Reuters
