Debt and Budget Worries Lifts Bond Yields to Multi-Year Highs, Alphabet and Apple In Focus

Barry Adams
03 Sep, 2025
New York City

Broader market indexes struggled to rise above the flatline, following the rise in global bond yields and uncertainties linked to the U.S. trade policy.

The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite advanced 0.7% after Alphabet, the parent of the Google search engine, avoided a harsher sentence from a federal judge. 

A federal court ruled that Alphabet can keep the Chrome browser but must share data with its search partners. 

Alphabet soared more than 5% after the ruling, because it removed a key legal issue looming over the last five years. 

The U.S. Department of Justice alleged in a court case in 2020 that the search company kept its dominance by creating strong barriers to entry and exclusive access to customer behavior.

The 10-year yield on the U.S. Treasury bond increased to 4.28% amid growing worries about record-high federal government debt and uncertainty related to debt ceiling negotiations. 

The yields on bonds of the UK, France, and Japan rose to multi-year highs as governments struggle with record debt levels and pursue higher defense spending. 

 

U.S. Stock Movers 

Alphabet Inc. jumped 5.4% to $223.38 after a federal judge ruled that the parent of the Google search engine operator can keep its Chrome browser. 

The ruling also prevented the search company from striking exclusive search deals and required it to share key search data with its customers. 

Apple Inc. jumped 3.7% to $238.26 following the federal court's decision regarding Google parent Alphabet Inc. 

The court's ruling will allow the popular mobile phone maker to continue preloading Google Search onto its iPhones and other electronic devices for a fee. 

“Google will not be barred from making payments or offering other consideration to distribution partners for preloading or placement of Google Search, Chrome, or its GenAI products,” the decision states.

The latest ruling allows Apple and other mobile device makers to strike additional deals with Google for AI-related products. 

Macy's Inc. soared 12% to $15.12, and the apparel and accessories retailer reported better-than-expected second-quarter results and lifted its full-year outlook. 

The retailer posted adjusted earnings of 41 cents per share on $4.81 billion in revenue in the fiscal second quarter. 

The company revised its full-year adjusted earnings per share estimate to between $1.70 and $2.05 from $1.60 and $2.0 and sales between $21.15 billion and $21.45 billion from the previous range between $21.0 billion and $21.40 billion, respectively. 

Zscaler Inc. jumped 1.8% to $278.90 after the cybersecurity company delivered better-than-expected fiscal fourth-quarter results and the company's guidance surpassed expectations. 

Consolidated revenue increased to $719.2 million from $592.9 million, net loss advanced to $17.6 million from $14.9 million, and diluted losses per share expanded to 11 cents from 10 cents a year ago.

Zscaler guided fiscal first-quarter 2026 revenue to be between $772 million and $774 million, non-GAAP income from operations between $166 million and $168 million, and non-GAAP net income per share between 85 cents and 86 cents.

The cybersecurity company estimated fiscal full-year 2026 revenue to be between $3.265 billion and $3.284 billion, non-GAAP income from operations between $728 million and $736 million, and non-GAAP net income per share between $3.64 and $3.6.