Wall Street pays close attention to court rulings, since even a single decision can send stock prices sharply higher or lower. So when a Washington judge announced that Google could keep its Chrome browser, although it would have to share a few trade secrets with rivals, Alphabet's stock surged 7% before most people had finished their first coffee.

The news lifted not only Google but also Apple, whose own fortunes are helpfully tethered to Google's willingness to funnel billions into Safari. The financial world responded as if the issue had been fully settled, when in fact it was closer to a pragmatic compromise: Chrome stays, data-sharing may not start anytime soon since Google will probably appeal, and the government gets to say it did something about antitrust. 

Markets, predictably, rallied. S&P 500 and Nasdaq futures are pointing higher. The ruling underscores a new mood in the antitrust universe: less break-up-the-giants, more regulate-them-gently.

But Alphabet's courtroom victory is only the appetizer. The main course, at least for investors, is the labor market. The Job Openings and Labor Turnover Survey, known as JOLTS, is due later today, followed later in the week by the marquee nonfarm payrolls report.

Federal Reserve Chair Jerome Powell, who recently warned of labor market "weakness", will be parsing every data point ahead of the September 17th interest-rate decision. In the meantime, yields on long-dated Treasury notes continue their erratic waltz. The 30-year flirted with the 5% mark, which may not mean much to civilians but is enough to cause seasoned portfolio managers to look like they just saw the intern fat-finger an extra zero into the trade. Fiscal concerns, tariffs, and the general unpredictability of American governance all play their part.

September, of course, has its own reputation on Wall Street: historically the worst month for stocks. Since 2000, the S&P 500 has lost an average of 1.5% during these thirty days, which means traders approach the month with extra caution.

This year is no exception. Even with Macy's soaring nearly 10% on sunnier forecasts, and Dollar Tree rising on thrift's eternal appeal, the overall mood is one of cautious dread. The American consumer, PwC tells us, is preparing for the steepest holiday spending drop since the pandemic. 

In Europe, stocks have been sliding. Frankfurt's DAX in particular surrendered gains like a gambler on a cold streak, yet it is not the red ink in share prices that unnerves financiers most. It is the bond market, where yields from Paris to Washington are climbing like ivy, wrapping themselves around deficits that already look overgrown. France now pays more to borrow than Greece, Britain's 30-year bonds are straining at historic highs, and even the United States is flirting with the kind of interest costs that make trillion-dollar figures sound alarmingly routine.

Behind the squall lies a familiar paradox: investors once feared tariffs for fueling inflation, now they fear their cancellation for starving tax revenues. The Trump administration's fiscal project rests on a precarious formula: squeeze trade partners for cash while bending the Federal Reserve toward lower rates. The arithmetic is unforgiving. If U.S. 10-year yields cannot drift closer to 3.25%, interest payments will keep ballooning, whatever the White House promises about discipline. Central banks, then, remain the reluctant guardians of credibility. In the meantime, gold is rising, equities are sagging, and the world's bondholders are watching every press release for reassurance that someone, somewhere, still has a plan.

In Asia-Pacific, equity markets continue to decline. The Japanese stock market is down 0.9%, while Hong Kong and Shanghai are down around 0.6% and 1%, respectively. India is flat. South Korea and Taiwan are posting slight gains. Australia is suffering the most this morning. The ASX 200 is down 1.85%, weighed down by its banks, real estate, industrial and technology sectors. Australia's Q2 GDP came in slightly better than expected, but marks its weakest 12-month growth since the 1990s.

Today's economic highlights:

On today's agenda: Japan's Composite and Services PMI by Jibun Bank; China's Caixin Composite PMI; France, Germany, Eurozone, and UK Composite and Services PMIs; in the United States, durable goods orders, factory orders, and JOLTS job openings. See the full calendar here.

  • Dollar index: 98,330
  • Gold: $3,545
  • Crude Oil (BRENT): $67.76 (WTI) $64.19
  • United States 10 years: 4.26%
  • BITCOIN: $111,152

In corporate news:

  • State Street entered a strategic partnership with Apex Fintech Solutions, acquiring a minority stake to enhance its global wealth services using Apex's digital custody and clearing platform.
  • Alphabet avoided a breakup in its U.S. antitrust case, as a federal judge ruled it can retain Chrome and Android, boosting its shares over 6% and paving the way for continued search engine payments to Apple.
  • Dutch pension fund PFZW cut ties with BlackRock over concerns about its sustainability voting record, reallocating funds to other managers including UBS, Lazard, and Schroders.
  • Tesla's new vehicle registrations in Germany plunged 39% in August and 56% year-to-date, according to local transport authorities.
  • Nasdaq’s Verafin unit partnered with BioCatch to integrate fraud detection tools and co-develop technologies to fight financial crime.
  • Aon agreed to sell most of NFP’s wealth management business back to Madison Dearborn Partners for $2.7 billion, streamlining its focus on risk and human capital services.
  • Dollar Tree raised its full-year sales and EPS guidance after reporting strong Q2 results with 6.5% same-store sales growth, citing increased demand across income levels.
  • CVS Health announced updated flu vaccinations are now available at CVS Pharmacy and MinuteClinic locations nationwide.
  • AbbVie reported updated Phase 2 data for epcoritamab in relapsed/refractory diffuse large B-cell lymphoma, supporting its outpatient monitoring potential.
  • AeroVironment delivered two laser-equipped counter-drone vehicle prototypes to the U.S. Army as part of a multi-phase high-energy laser program.
  • U.S. Bancorp revived its institutional bitcoin custody service after regulatory changes under the Trump administration, partnering with NYDIG as sub-custodian.
  • ID.me raised $340 million in new funding, pushing its valuation above $2 billion, to expand its digital identity verification tools amid rising AI-driven fraud.
  • IQM Quantum Computers raised $320 million in a new funding round, aiming to scale its quantum computing offerings globally with support from Goldman Sachs and other investors.
  • Blackstone is buying a major Paris property from Union Investment for approximately $815 million, signaling confidence in the European office market.
  • OpenAI will acquire product-testing startup Statsig for $1.1 billion, appointing its CEO as CTO of applications and integrating the team into OpenAI.
  • Kraft Heinz plans to split into two separate companies to revive growth and boost share value.
  • Zscaler has projected its annual revenue to surpass Wall Street estimates.

Analyst Recommendations:

  • Accenture Plc: Rothschild & Co Redburn downgrades to neutral from buy and reduces the target price from USD 350 to USD 250.
  • Air Lease Corporation: Deutsche Bank downgrades to hold from buy and reduces the target price from USD 66 to USD 65.
  • Arthur J. Gallagher & Co.: Goldman Sachs initiates coverage with a buy rating and a target price of USD 344.
  • Bio-Techne Corporation: RBC Capital upgrades to outperform from sector perform and raises the target price from USD 61 to USD 73.
  • Borgwarner Inc.: Baird upgrades to outperform from neutral and raises the target price from USD 41 to USD 52.
  • Chipotle Mexican Grill, Inc.: Rothschild & Co Redburn upgrades to buy from neutral with a target price of USD 55.
  • Hubspot, Inc.: Bernstein initiates coverage with an outperform rating and sets a target price of USD 606.
  • Ionis Pharmaceuticals, Inc.: BMO Capital Markets upgrades to outperform from market perform and raises the target price from USD 40 to USD 70.
  • Kraft Heinz: Morgan Stanley upgrades to market weight from underweight with a price target raised from USD 28 to USD 29.
  • Medpace Holdings, Inc.: Rothschild & Co Redburn downgrades to neutral from buy with a price target raised from USD 342 to USD 474.
  • Transunion: Needham upgrades to buy from hold with a target price of USD 115.
  • Alphabet Inc.: Deutsche Bank maintains its buy recommendation and raises the target price from USD 215 to USD 260.
  • Autozone, Inc.: Citi maintains its buy recommendation and raises the target price from USD 3900 to USD 4900.
  • Cytokinetics, Incorporated: Barclays maintains its overweight recommendation and raises the target price from USD 53 to USD 71.
  • Icon Public Limited Company: Rothschild & Co Redburn upgrades to buy from neutral with a price target raised from USD 184 to USD 236.
  • Insmed Incorporated: Wells Fargo maintains its overweight recommendation and raises the target price from USD 140 to USD 171.
  • Lucid Group, Inc.: Baird maintains its neutral recommendation and raises the target price from USD 2 to USD 20.
  • Thor Industries, Inc.: Truist Securities maintains its hold recommendation and raises the target price from USD 86 to USD 115.
  • United Therapeutics Corporation: Wells Fargo maintains its equalweight recommendation and raises the target price from USD 295 to USD 414.