Stock Market Today: Nasdaq Rallies on Alphabet Surge, Dow Lags

Nasdaq Surges as Tech Megacaps Dominate Trading

The Nasdaq Composite (COMP) climbed 0.8% to 21,449.01 as investors piled into technology stocks following the pivotal antitrust ruling on Alphabet (NASDAQ: GOOGL, GOOG). Alphabet’s Class A shares surged 8.18% to $228.64, while Class C gained 8.30% to $229.59, marking one of the strongest single-day rallies for the company in years. The decision by Judge Amit Mehta to allow Google to retain control of Chrome while curbing exclusive deals avoided the existential threat of a forced breakup. Instead, Alphabet now faces regulatory guardrails while retaining the multibillion-dollar Apple search partnership. That deal, estimated at over $20 billion annually, secures Alphabet’s dominance in mobile search while providing Apple (NASDAQ: AAPL) with a critical high-margin revenue stream. Apple shares climbed 2.73% to $235.99, reinforcing the tech sector’s dominance in today’s session.

The S&P 500 (SPX) rose 0.28% to 6,433.79, driven largely by gains in communication services and technology. However, breadth was weak, with seven of eleven sectors trading lower. The Dow Jones Industrial Average (DJIA) fell 0.36%, down 162 points to 45,133. Blue chips underperformed as cyclical sectors lagged, especially energy and industrials. The divergence underscored a familiar dynamic—capital flowing back into megacap growth while economically sensitive areas lagged on fears of slowing demand.

Sectors Diverge: Communication Services Outpaces Energy

Sector breakdown revealed sharp dispersion. The Communication Services Select Sector SPDR Fund (XLC) advanced 1.21% to $112.55, reflecting the surge in Alphabet and other digital names. The Technology Select Sector SPDR (XLK) added 0.16% to $260.22, aided by strength in cloud and AI-related firms such as Zscaler (NASDAQ: ZS), which rose 2% after earnings topped expectations. By contrast, the Energy Select Sector SPDR (XLE) plunged 2.06% to $88.66 as crude oil prices fell sharply. The shift highlighted how macro catalysts—tariffs, OPEC+ speculation, labor data—are selectively pressuring cyclicals while leaving technology relatively insulated.

Bond Market Reaction: Yields Retreat on JOLTS Weakness

Treasuries extended gains after July’s JOLTS survey revealed job openings at 7.18 million, undershooting forecasts of 7.4 million and signaling the softest labor demand since the early pandemic. For the first time since 2018, unemployed Americans now outnumber available jobs. The 10-year Treasury yield (US10Y) slipped 5 basis points to 4.222%, while the 30-year yield (US30Y) dropped 6 basis points to 4.906%. The 2-year yield (US02Y) fell to 3.615%, a move that narrowed the inversion but underscored expectations of Fed easing.

Market participants are now pricing a high probability of a 25 basis point cut at the September 17 FOMC meeting. Yet speeches from Fed officials revealed divisions: St. Louis Fed President Alberto Musalem warned of ongoing inflationary pressures tied to tariffs, while Governor Christopher Waller backed a sequence of cuts over six months. Treasury Secretary Scott Bessent is accelerating interviews for Powell’s successor, further complicating policy outlooks.

Macy’s Delivers Historic Surge

Macy’s (NYSE: M) staged one of its most dramatic moves in decades, jumping 16.31% to $15.69 after reporting Q2 EPS of $0.41 against $0.18 expected, on revenue of $4.81 billion versus $4.76 billion forecast. The company raised its full-year guidance, now projecting $1.70–$2.05 EPS and $21.15–$21.45 billion revenue. Positive same-store sales—the first in three years—sparked relief that the retailer may be regaining momentum despite store closures. This rally ranked as the second-largest one-day percentage gain in Macy’s trading history, according to Dow Jones Market Data. Still, management cautioned that tariffs and higher prices will push consumers toward selective spending in the second half of 2025.

Campbell’s Beat Overshadowed by Tariff Outlook

Campbell Soup (NYSE: CPB) rallied nearly 5% to $32.97 after delivering adjusted EPS of $0.62 versus consensus $0.56. Revenue of $2.32 billion narrowly missed the $2.33 billion estimate, but margins held firm. Guidance for fiscal 2026, however, rattled some investors: EPS is expected to decline 12–18%, with two-thirds of the hit attributed directly to tariffs. That forecast cast doubt on consumer staples’ ability to offset rising costs through pricing, making CPB a defensive play facing external headwinds.

Tech Earnings Fuel Resilience: Zscaler and HealthEquity

Zscaler (ZS) advanced after fiscal Q4 earnings underscored resilience in cybersecurity. EPS of $0.89 topped expectations by $0.09, with revenue at $719 million, above consensus of $707 million. The company’s upbeat guidance further bolstered sentiment around cloud and AI security spending. Meanwhile, HealthEquity (NASDAQ: HQY) gained 4% after posting EPS of $1.08 on $326 million revenue, both exceeding estimates. These results reinforced the narrative that select growth niches remain strong despite macro softness.

Gold and Bitcoin Extend Breakouts

Gold (XAU/USD, GC=F) rose 1% to $3,628.10 per ounce, setting yet another intraday record. The metal is now up 36% YTD, fueled by falling yields, inflation uncertainty, and fiscal concerns across major economies. This marks the third consecutive session of record highs, confirming gold’s position as the year’s top-performing asset. Bitcoin (BTC-USD) advanced 1.11% to $112,026, holding above the psychologically critical $110,000 level. Institutional demand and ETF inflows have stabilized the crypto market after earlier volatility, with traders watching whether it can challenge its all-time high above $120,000.

Crude Oil Retreats on OPEC+ Speculation

WTI crude (CL=F) dropped 2.67% to $63.84, its lowest level in weeks, as reports suggested OPEC+ may consider raising output at its upcoming meeting. The S&P GSCI commodity index slid 0.82%, extending pressure on the broader commodity complex. For equities, this translated into sharp declines in the energy sector, with names like ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) trading lower alongside refiners. The energy slump highlighted how tariff-induced demand risks and potential supply increases are converging to suppress oil.

Global Markets: Asia Mixed, Europe Supported by Index Rebalance

Asian equities showed no uniform trend. The Nikkei 225 closed down 0.88% at 41,938.89, while Topix shed 1.07%. Hong Kong’s Hang Seng fell 0.6% to 25,343.43 amid regulatory investigations into insider trading leaks, and China’s CSI 300 dipped 0.68% despite the services PMI hitting 53.0. In contrast, India’s Nifty 50 gained 0.23% and the BSE Sensex rose 0.12%, reflecting domestic demand resilience. Australia’s S&P/ASX 200 posted its steepest loss since April, dropping 1.82% to 8,738.80, with tech and real estate leading declines.

In Europe, stability in bond yields supported indices. The Stoxx Europe 50 added Spanish bank BBVA (BME: BBVA) to its roster, effective September 19, a move expected to boost liquidity as ETFs and structured products rebalance holdings.

Hedge Fund Positioning Raises Pullback Risks

JPMorgan’s hedge fund intelligence flagged elevated risks. Net leverage rose sharply in August as funds pivoted from short to long exposure. The crowding metric jumped from -5 to +5, an unusually aggressive swing. With the S&P 500 already delivering a 1.7% August gain despite tariff shocks and bond volatility, positioning now appears stretched. Concentration in megacaps—particularly Alphabet, Apple, and Nvidia (NASDAQ: NVDA)—suggests a fragile equilibrium where profit-taking could spark outsized volatility.

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