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- 🗞️ Alphabet Surges Ahead
🗞️ Alphabet Surges Ahead
PLUS: Why is Ulta Beauty rising?
Market Performance
S&P 500: 6,415.54 ⬇️ 0.69%
Nasdaq: 21,279.63 ⬇️ 0.82%
Dow Jones: 45,195.81 ⬇️ 0.55%
Alphabet Gets to Keep Chrome
Alphabet (GOOGL) shares surged 8% as investors celebrated what many viewed as a lenient outcome from the landmark antitrust case that threatened to reshape Big Tech's landscape.
U.S. District Judge Amit Mehta issued his final ruling on Google's proposed remedies for its monopoly, rejecting the Department of Justice's most severe proposals.
The court refused to force the sale of the Chrome browser or impose a contingent divestiture of Android, two moves that would have fundamentally altered Google's business model and data collection capabilities.
"Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system in the final judgment," Mehta stated, noting that "plaintiffs overreached in seeking forced divestiture of these key assets."
Instead, the judge imposed targeted restrictions on Google's distribution practices. The company can no longer enter into exclusive contracts that condition payments or licensing, though it can still make payments to preload products.
This means Google's lucrative deal with Apple to be the default iPhone search engine can continue, just without exclusivity clauses.
The ruling also requires Google to share certain search index data and user interaction data with rivals, though advertising data remains protected.
Google must provide this information on "ordinary commercial terms" similar to its current syndication services.
Alphabet is a big tech stock and has a Ziggma score of 93. However, it ranks in the bottom half percentile in terms of growth.
Our Takeaway
This ruling represents a major victory for Google, avoiding the nuclear option of forced breakups while maintaining its core revenue streams.
The stock's 8% surge reflects relief that the company can preserve its integrated ecosystem and continue to monetize user data effectively.
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Market Overview
September kicked off with a thud as all three major indices closed in negative territory, weighed down by rising bond yields and uncertainty over tariffs.
The 30-year Treasury yield spiked above 4.97%, while the 10-year yield reached 4.27%, creating fresh headwinds for equity valuations.
The catalyst came from Friday's federal appeals court ruling that declared most of Trump's global tariffs illegal.
The 7-4 decision from the U.S. Court of Appeals for the Federal Circuit determined that only Congress has authority to impose sweeping levies, potentially forcing the government to refund billions in collected tariff revenue.
This development sent bond investors scrambling as they priced in the possibility of worsening fiscal conditions.
With the U.S. already facing a stressed budget situation, having to repay tariff collections could impact the deficit picture.
Adding to September's historical weakness, the S&P 500 has averaged a 4.2% drop over the past five years during this month.
Technical indicators also turned bearish, with the Nasdaq 100 falling below its 50-day moving average for the first time since April, while Nvidia contributed significantly to the tech selloff.
Stock Moves Deciphered 📈
Ulta Beauty (ULTA) ⬆️ 8.08%
Ulta Beauty surged following exceptional Q2 earnings results, beating expectations with $5.78 EPS versus the expected $5.03, plus a Barclays upgrade raising the price target to $617 amid strong guidance.
Take-Two Interactive (TTWO) ⬆️ 3.32%
Take-Two Interactive climbed on strong Q1 2026 earnings momentum, a 92% volume surge, and analyst optimism forecasting 32% returns as the gaming sector showed resilience.
Equifax (EFX) ⬇️ 5.04%
Equifax fell due to a technical breakdown, bearish chart patterns, broader financial services weakness stemming from rising yields, and general September market risk-off sentiment.
Headlines You Can't Miss
🏭 ISM Manufacturing Index rose to 48.7% in August, beating expectations of 48.5% but still indicating contraction for the sixth consecutive month.
📊 Volatility Index (VIX) surged over 3 points to 19.29 as macroeconomic uncertainty and tariff concerns weighed on investor sentiment.
🇮🇳 India Markets gained after Trump said India offered to reduce tariffs on U.S. imports to zero, calling their relationship "one-sided."
🏺 Suntory Beverage CEO Takeshi Niinami resigned following a police investigation into the purchase of a potentially illegal supplement, and shares rose 2.94%.
🇦🇺 Societe Generale Australia was fined $2.52 million by regulators for failing to prevent suspicious orders in electricity and wheat futures markets.
💰 30-Year Treasury Yields hit 4.99%, reaching levels not seen since 2023 as bond investors priced in fiscal concerns from the tariff ruling.
🔍 Shanghai Cooperation Organization leaders met in Tianjin as Asia-Pacific markets closed mixed amid ongoing tariff uncertainty.
Trending Stocks
Kraft Heinz (KHC) ⬇️ 6.97%
Kraft Heinz confirmed it will split into two publicly traded companies through a tax-free spinoff. "Global Taste Elevation" will feature shelf-stable products such as Heinz and Kraft Mac & Cheese, while "North American Grocery" will include Oscar Mayer and Lunchables.
Warren Buffett expressed disappointment with the decision, adding pressure to shares.
PepsiCo (PEP) ⬆️ 1%
PepsiCo gained 1% after reports stated that activist investor Elliott Management took a $4 billion stake in the snack and beverage giant.
The Wall Street Journal cited sources confirming Elliott's substantial position, suggesting potential operational improvements or strategic changes ahead for the company.
Air Lease (AL) ⬆️ 6.7%
Air Lease soared after announcing a merger agreement with Apollo, Brookfield, SMBC Aviation Capital, and Sumitomo.
The aircraft leasing company's deal represents a consolidation play in the aviation financing sector, providing investors with immediate upside from the buyout premium.
What’s Next?
Key Events to Watch 👇
September historically ranks as the worst month for equities, with the S&P 500 averaging 4.2% declines over the past five years.
Jobs Report - August employment data will influence Fed's September 16-17 rate decision expectations
Costco Sales Update - July retail month results expected, with Gordon Haskett projecting 7% same-store sales growth
Supreme Court Appeal - Trump indicated he will appeal the tariff ruling to the highest court
Fed Policy Meeting - September 16-17 FOMC meeting with potential rate cut on the table
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Source: Visual Capitalist
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