S&P 500 and Nasdaq futures rose on Tuesday evening, tracking sharp gains in Google owner Alphabet after an antitrust ruling against the internet giant outlined less severe penalties than those proposed by the Department of Justice.
Apple shares also rose following the ruling, given that Google will be allowed to maintain a key agreement with the iPhone maker.
But Dow futures fell, with overall sentiment remaining cautious after Wall Street logged a weak start to September amid heightened uncertainty over President Donald Trump’s trade tariffs, following a ruling against them.
Anticipation of key payrolls data this week also kept investors cautious towards equities, while Wall Street was due for some pullback after logging gains in August, with September historically seen as a weak month for equities.
S&P 500 Futures rose 0.1% to 6,434.0 points, while Nasdaq 100 Futures rose 0.2% to 23,328.75 points by 19:22 ET (23:22 GMT). Dow Jones Futures fell 0.2% to 45,269.0 points.
Alphabet, Apple shares rise on antitrust ruling
Shares of Google owner Alphabet Inc (NASDAQ:GOOGL) and iPhone maker Apple Inc (NASDAQ:AAPL) rose in after market trade on Tuesday after a judge ruled that Google can keep its Chrome browser and android operating system. The DOJ had earlier called for Google to divest both assets, as part of a long-running antitrust case against the company.
Google will still be required to share some of its search data with rivals, and will no longer be allowed to sign exclusive contracts to promote and license its products.
Still, the ruling was seen as far less severe than the penalties outlined by the DOJ against Google. Alphabet shares surged 7.1% in aftermarket trade.
Apple shares rose 2.8%, after the ruling allowed Google to continue paying the iPhone maker billions of dollars to set Google as the default search engine in its popular Safari internet browser.
A final judgement on the case is now due on September 10.
Wall St ends lower as appeals court rules against Trump tariffs
Wall Street indexes marked a weak session on Tuesday, after a federal appeals court ruled late last week that Trump’s tariffs were illegal and should be suspended by October 14.
Trump said his administration will appeal the ruling in the Supreme Court, potentially setting the stage for a protracted legal battle over his trade levies. The president had last month imposed duties ranging from 10% to 50% on major U.S. trading partners.
Any ruling against Trump’s tariffs will also likely require the Trump administration to renegotiate several trade deals signed with major economies in recent months, which could herald disruptions in global trade.
The ruling also sparked a sell-down in U.S. Treasuries, with longer-dated notes seeing the biggest declines. Yields rose across the board on Tuesday.
The S&P 500 fell 0.7% to 6,415.54 points on Tuesday. The NASDAQ Composite fell 0.8% to 21,279.63 points, while the Dow Jones Industrial Average fell 0.6% to 45,295.69 points.
Source :
https://www.investing.com/news/stock-market-news/sp-500-nasdaq-futures-rise-on-google-ruling-trump-tariff-uncertainty-hits-wall-4220523
