TheDrop Market Analysis, 09/03/25

Markets rose, at least the majority, as the fallout from the failed antitrust lawsuit against Google looms across the market, as well as a new jobs report indicating a greater likelihood for a September Fed rate cut.

Google's Chief Executive Officer Sundar Pichai, www.fonearena.com.

The S&P 500 composite rose 0.5%, the Nasdaq composite rose 1%, and the Dow Jones 30 composite fell 0.1%, a minor drawback, more similar to a stagnation. Foreign ETFs, meanwhile, such as the British FTSE 100 and the French CAC 40, all rose, following their American counterparts yet again in another instance of market pegging.

Stocks made landmark growth after a U.S. court ruled that Google should not sell off its Chrome browser as intended by an antitrust lawsuit, exciting investors who previously sold off the stock for its many lawsuits not only domestically, but internationally, related to its several monopolistic features. Nevertheless, with the ruling now concluded, not only does Google have to pay Apple to have its browser included as a "default," but many Magnificent Seven and AI investors saw this as significant, as a reversal of previous challenges related to a potential "bubble." Alphabet stock alone rose 9.1%, singlehandedly one of its best days on record. Apple stock also rose by a phenomenal 3.8%. But why are these numbers so significant? Unlike smaller tech companies like SoFi and even Palantir, the Magnificent Seven is far more resilient and, even during bullish periods, significant change beyond 5% is unlikely. However, Google's rise proved it could break this precedent, showing that the previously-deemed bloated Mag. 7 still has room for huge single-day gains.

Today's release of the JOLTS jobs report further amplified concerns but also optimism. Job openings according to the report reached in July 7.18 million, below the expectation of 7.28 by economists, and the 7.36 million recorded in June. This report, while negative as a sign of tariffs' detrimental economic impacts, did also cause betting odds for a September interest rate cut to rise, as the Fed may need to consider making deeper rate cuts in order to give companies more breathing room to borrow and subsequently produce more job openings.

Dollar Tree continued its downward streak after reducing its Q3 earnings outlook, now causing fear among the very same investors that were optimistic in the stock-wise bullish company. This could be due to heightened competition in the industry, such as with Dollar General, which has reported similarly successful earnings reports in recent fiscal quarters.