Key Takeaways
- Alphabet (GOOGL, GOOG) shares surged 6.2% after a US judge ruled the tech giant is not required to divest its Android OS or Chrome browser, nor cease payments to partners like Apple for preloading services.
- Despite Google's gains, the broader market experienced a downturn, with the Nasdaq (IXIC) falling 0.79%, the S&P 500 (SPX) down 0.73%, and the Dow Jones (DJI) losing 0.59%, as 30-year Treasury yields neared 5% and overvaluation concerns weighed on investors.
- Gold prices hit a record high while the US dollar climbed, reflecting investor caution amidst sliding stocks and bonds, and ahead of crucial US labor data.
- Etihad Airways plans to order more planes "very soon" and can self-fund $20 billion in capital expenditure over the next decade, focusing on organic growth, with no immediate plans for an IPO.
A US judge has delivered a significant victory to Alphabet (GOOGL, GOOG), ruling that the tech behemoth is not required to divest its Android operating system or the Chrome browser. This final judgment also permits Google to continue making payments to companies like Apple and others for preloading its products onto devices. The news sent Alphabet shares soaring by 6.2%.
While Google dodged a forced sale of its key products, the court did order the company to share information with competitors to address monopoly concerns. This ruling comes after a period of intense scrutiny over Google's market dominance in various sectors.
The broader market, however, faced headwinds, with major indices closing lower. The Nasdaq (IXIC) unofficially closed down 168.73 points, or 0.79%, at 21,286.82. The S&P 500 (SPX) fell 47.32 points, or 0.73%, to 6,412.94, and the Dow Jones Industrial Average (DJI) dropped 269.82 points, or 0.59%, ending at 45,275.06.
Investor sentiment was pressured by 30-year Treasury yields nearing 5%, which contributed to a slide in both stocks and bonds. Overvaluation concerns and heavy corporate debt sales also weighed on the market, with the S&P 500 trading at 22x forward earnings. Amidst this downturn, the US dollar climbed, and gold hit a record high, signaling a flight to safety among investors ahead of looming US labor data.
In other corporate news, Etihad Airways' CEO announced plans to order more planes "very soon," though a Boeing 777X order is not anticipated until after 2030. The airline is confident in its ability to self-fund $20 billion in capital expenditure over the next decade, prioritizing organic growth. The CEO also confirmed to Reuters that no timeline has been set for an initial public offering (IPO).
Regulatory developments saw the US SEC and CFTC staff issue a joint statement regarding the trading of certain spot crypto asset products. Meanwhile, the US steel capacity utilization stood at 78.1% in the week ended August 30, according to the American Iron and Steel Institute (AISI).
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.