Dow Jones recovers 200 points from lows in the final 30 minutes of trade; Alphabet hits record high

Benchmark indices on Wall Street ended the day mixed on Wednesday, as a late recovery helped the Dow Jones Industrial Average claw back from earlier losses. The Dow rebounded over 200 points in the final 30 minutes of trading, ultimately finishing the session flat. Meanwhile, the S&P 500 and Nasdaq outperformed, buoyed by gains in major tech names.

Alphabet shares surged to a record high, providing crucial support for both the S&P 500 and Nasdaq. Apple stock also rallied, rising 4% following a favorable verdict in a case involving Google Chrome. The decision appeared to alleviate antitrust concerns, boosting investor confidence in Big Tech.

Despite the late gains, market breadth on the S&P 500 remained weak, signaling that the broader index is still being propped up by a narrow group of large-cap stocks.

Bond markets also played a role in the recovery. The 30-year Treasury yield briefly touched 5% intraday, its highest level since July, before cooling off to 4.89%, helping ease pressure on equities.
The US labor market revealed further signs of cooling, as fresh data from the Bureau of Labor Statistics showed that job openings fell to 7.18 million in July, the lowest level in 10 months. This marks the first time since April 2021 that the number of unemployed individuals at 7.24 million has exceeded the number of job openings.

The July figures also missed economists’ expectations of 7.38 million and came alongside a downward revision for June, now reported at 7.36 million. Notably, job vacancies in the health care sector dropped to their lowest level since 2021, reflecting reduced hiring appetite in what has been a strong labor sector throughout the post-pandemic recovery.

Post the job openings data, the probability of a 25 basis points rate cut by the US Federal Reserve at its upcoming policy meeting on September 16-17, increased to 97%, according to the CME FedWatch tool.

Investors are now turning their attention to a slew of economic data due later today, including the ADP employment report, the initial jobless claims, the US trade deficit and the Services PMI, all of which will be reported before market open this evening.

In addition, two more Federal Reserve officials are scheduled to speak later today, potentially offering fresh insight into the central bank’s rate path.

Markets will also be closely watching the Senate hearing for Stephan Miran, nominated by President Donald Trump, to fill the Federal Reserve Governor seat vacated by Adriana Kugler, who resigned last month.