On the 3rd (local time), the New York stock market closed mixed. A U.S. court ruling against Google alleviated fears about regulation of big tech companies, leading the technology-focused Nasdaq index to surge more than 1%. In contrast, the Dow Jones Industrial Average closed lower as disappointing employment data heightened fears of an economic slowdown.
On this day, the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) finished at 45,271.23, down 24.58 points (0.05%) from the previous trading day.
In contrast, the large-cap S&P 500 index rose 0.5% to close at 6,447.88, while the technology-focused Nasdaq Composite Index surged 218.10 points (1.02%) to finish at 21,497.73.
The U.S. federal court ruled the previous day that although Google violated antitrust laws in the search market, it did not need to forcibly sell off its Chrome browser. A sense of relief spread throughout the market as investors felt the worst-case scenario they feared had been avoided. Thanks to this ruling, Google can maintain its agreement to pay about $20 billion (approximately 27.5 trillion won) annually to have its search engine pre-installed on devices like the Apple iPhone.
Following this news, shares of Google's parent company, Alphabet, soared over 9%, setting a new all-time high. Apple shares also rose more than 3% in tandem. Mark Mahaney, an analyst at Evercore ISI, noted, "The obstacles weighing on Google have been removed, allowing for a focus on fundamentals, and the valuation remains very attractive."
Meanwhile, the employment data heightened concerns about an economic slowdown. The U.S. Department of Labor reported that the job openings and labor turnover survey (JOLTS) for July counted 7.18 million job openings. This figure fell below both market expectations (7.38 million) and the previous month's figure (7.36 million), marking the lowest level since the COVID-19 pandemic.
Analysis suggests that while many corporations are hesitant to lay off existing employees, they are being extremely cautious about new hires, resulting in a 'no fire, no hire' labor market. Peter Buchva, author of North Report, stated, "This indicator confirmed the slowing employment pace observed in various statistics, and it provides the reason for the Federal Reserve to cut rates by 0.25 percentage points in two weeks."
As signs of cooling in the labor market emerged, expectations grew that the U.S. Federal Reserve (Fed) would lower interest rates this month. According to the Chicago Mercantile Exchange (CME) FedWatch, the market estimates it is over 95% likely that the Fed will cut rates by 0.25 percentage points at the September Federal Open Market Committee (FOMC).
As expectations of a rate cut spread, government bond yields reversed to a downward trend. The yield on the 30-year U.S. Treasury bond, which briefly hovered above 5%, fell to around 4.9%, and the yield on the benchmark 10-year Treasury bond also dropped to about 4.2%.
Investors are paying attention to the employment report for August, which will be released on the 5th. This report is expected to be a significant clue regarding the direction of Fed monetary policy. According to Bloomberg's tally, economists expect the August non-farm payroll to have increased by only 75,000 jobs.
Chris Senyek, chief investment strategist at Wolfe Research, said, "Unless cracks develop in investment expectations related to artificial intelligence (AI), the stock market is likely to rise steadily after the seasonally weak month of September. However, this high expectation could be a key risk factor in the market for 2026."