U.S. stocks finished mixed on Wednesday as a favorable antitrust ruling boosted Big Tech shares while new labor market data fueled expectations for a September rate cut by the Federal Reserve.
The Dow Jones Industrial Average slipped 24.58 points, or 0.05 percent, to 45,271.23. The S and P 500 rose 32.72 points, or 0.51 percent, to 6,448.26. The Nasdaq Composite Index increased by 218.1 points, or 1.02 percent, to 21,497.73.
Seven of the 11 S and P 500 sectors ended lower, led by energy dropping 2.3 percent and materials losing 0.53 percent. Communication services surged 3.76 percent, while technology added 0.82 percent, driving the day's gains.
The tech rally was fueled by a judge's decision not to force Alphabet's Google to sell its Chrome browser in a closely watched antitrust case. The ruling also allowed Google to continue paying Apple to keep its search engine as the default in Safari and Siri, easing fears of sweeping structural changes.
Alphabet shares jumped nine percent, while Apple rose 3.81 percent, boosting confidence in the resilience of the Big Tech-led market advance. "This was clearly a clearing event for GOOGL shares, and we continue to like the stock," Mark Mahaney, Evercore ISI head of internet research, said on CNBC's "Squawk on the Street" business show. "This distraction is behind us. Now, you can focus on the fundamentals, and valuation, I think, is still highly attractive."
On the economic front, the Job Openings and Labor Turnover Survey (JOLTS) showed job openings hit 7.18 million in July, falling to its lowest level in nearly a year, signaling cooling demand for workers. The report, alongside recent downward revisions to spring hiring, added to speculation that the Federal Reserve will move ahead with a rate cut in September.
"Today has seen more evidence that the U.S. jobs market is cooling markedly with vacancies dropping sharply and the quits rate pointing to wage growth slowing to three percent. With little inflation pressure coming from the jobs market the Fed is very likely to cut interest rates meaningfully in the months ahead," said James Knightley, Chief International Economist at ING.
Investors now await the August jobs report due Friday, the week's main event.
US stocks close mixed after Google avoids worst-case penalties
The Iranian government is focusing on public concerns and maintaining stable supplies of essential goods amid recent protests, Iranian President Masoud Pezeshkian said in a televised interview on Sunday.
In the city of Karaj, northwest of the capital Tehran, daily life has largely continued as normal. A video filmed by a local resident on Sunday shows food stores open and grocery shelves fully stocked.
"This is the block near my home, and there are some food stores here. Daily life continues here. Last night we did not see many protests in Karaj. Right now the city is very safe. This is a grocery store close to my home. All the food is available; nothing is in shortage. Here are noodles and different types of beans. Here are dairy products, cheese, and yogurt. I also checked other grocery stores and didn't see any shortages. Everything is available," said local resident Ali Reza.
Iranian officials have described recent disturbances as acts orchestrated by the "enemy," including some carried out by well-trained and armed "terrorists." The incidents have caused casualties among security personnel and civilians, as well as property damage.
The Secretary of Iran's Supreme National Security Council Ali Larijani has directed authorities to severely punish the "terrorists."
Meanwhile, Iran's police chief Ahmad-Reza Radan said on Sunday that the police had raised alert levels and arrested several leaders of the troublemakers during the operations on Saturday.
President Pezeshkian noted in the interview that the normal demands of the Iranian people are reasonable and justified, but they must realize that triggering riots and carrying out terrorist acts are the enemy's attempts to undermine the country. He urged the public to remain vigilant.
Also on Sunday, Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that Tehran would regard U.S. and Israeli bases and facilities in the Middle East as "legitimate targets" if Washington takes military action against Iran. His remarks followed media reports saying U.S. President Donald Trump is "seriously considering authorizing a strike" against Iran.
Iranian state media reported that at least 109 members of Iran's security forces have been killed in clashes since the protests began 14 days ago. Meanwhile, human rights groups based outside the country said the number of protesters killed has exceeded 200, though the figure could not be independently verified.
The protests initially erupted over a sharp depreciation of the rial and sweeping subsidy reforms. Iranian authorities have blamed the unrest on foreign-linked agents and sanctions imposed by the United States.
Iranian president says government focusing on ensuring supplies amid protests
