Supported by gains in Alphabet (GOOG/L) and Apple (AAPL), and a possible September-rate cut, the S&P 500 and Nasdaq Composite are bouncing back from yesterday’s retreat. The Dow Jones Industrial Average, which includes fewer tech stocks, is lower.

The Magnificent Seven are contributing to the gains of the major indices with Alphabet, Apple, and Tesla (TSLA) leading the group. Alphabet is surging after a judge’s decision not to force Google to sell its Chrome browser business. This ruling also allowed Alphabet to continue paying Apple to use Google Seach as the default in Siri and Safari.

Alphabet’s (GOOG/L) gains are sending the Communication Services sector (XLC) to a new all-time high. Consumer Discretionary and Technology (XLK) are in the lead as well. Meanwhile, Energy (XLE) is lagging in part due to oil prices falling.

Economic Data

Job Openings fell to 7.181M in July from 7.357M in June and well below forecasts of 7.4M. This is the lowest job openings number since September 2024.

On the other hand, Job Quits continue to show stability and remain unchanged at 2% in July.

Factory orders fell 1.3% M/M in July, decelerating from their 4.8% drop in June and above the estimates of a 1.4% drop. Ex- transportation orders beat consensus and increased 0.6% compared to a 0.4% gain in June, making it the biggest gain since March 24. There was a notable 9.5% decline in orders of transportation equipment, as well as a 32.7% decline in non-defense aircraft and parts. On the other hand, machinery saw a 1.9% increase, primary mentals rose 1.6%, and computers and electronic equipment rose 0.5%.

The market is also finding support from the expected drop in interest rates following this morning’s economic data.

In addition, Fed Bostic (FOMC voter) also mentioned this morning that September is in play for a rate cut, but he still sees one rate cut this year. He indicated the situation could evolve and demand more cuts, but that he remains concerned about potential inflation from tariffs.