S&P 500 and Nasdaq Poised to Open Higher as Alphabet Rallies Ahead of Jobs Data

Futures Climb on Alphabet’s Legal Victory

U.S. stock markets are on track for a strong open, with S&P 500 and Nasdaq futures rising sharply as investors cheered Alphabet’s more than 6% premarket surge. The tech giant gained relief after a federal judge ruled it could retain its Chrome browser but must share search data and end exclusive agreements—sidestepping a full breakup.

Apple benefitted too, climbing nearly 3%, as the ruling preserved lucrative default search payments. The outcome eased investor worries and lifted wider tech sentiment ahead of critical labor data releases.

Labor Data Looms: JOLTS and Payrolls in Focus

Markets are now bracing for the Job Openings and Labor Turnover Survey (JOLTS), with attention sharply focused on Friday’s nonfarm payrolls report. Earlier labor data revisions hinted at a cooling job market, pushing Fed rate-cut odds to over 90% for mid-September.

The labor outlook remains the core narrative as traders await data that could confirm dovish sentiment and shape futures.

Bond Yields and Tariff Shockwaves

A recent court ruling that invalidated much of the Trump-era tariffs on legal grounds is fueling concerns over fiscal stability. In response, the 30-year Treasury yield briefly hit a one-month high near 5%, pressuring bond markets ahead of the holiday.

This rise in yields is injecting caution into markets even as stock sentiment improves.

Sector Highlights: Retail and Tech

Retailer Macy’s leapt 12.5% after raising its full-year outlook, while Dollar Tree dropped nearly 7% despite a positive forecast. Cloud-security firm Zscaler also gained, buoyed by improved revenue guidance. These swings point to a volatile copper-bottomed U.S. holiday season for consumer sentiment.

Market Mood: Cautious Optimism Amid Weak Seasonal Patterns

September is historically a tough month for markets. With rate-cut hopes rising thanks to weak labor data and dovish Fed signals, market momentum remains fragile. Even with a tech boost from Alphabet, participants are treading carefully.

Notably, HSBC lifted its year-end S&P 500 target to 6,500, signaling optimism if macro conditions hold.

The Bottom Line

Stock futures are pointing higher as Alphabet’s antitrust reprieve boosts tech confidence. But as JOLTS and payroll data loom, markets remain sensitive to any sign of labor-market strength—an outcome that could delay the anticipated Fed easing. The week ahead promises volatility driven by legal wins, economic data, and shifting monetary outlooks.