04:57 PM EDT, 09/03/2025 (MT Newswires) -- The Nasdaq Composite and the S&P 500 advanced Wednesday, buoyed by a surge in Alphabet (GOOG, GOOGL) shares, while the latest labor market data boosted bets for an interest rate cut by the Federal Reserve later this month.

The Nasdaq rose 1% to 21,497.7, while the S&P 500 climbed 0.5% to 6,448.3, both rebounding after two days of declines. The Dow Jones Industrial Average slipped 0.1% to 45,271.2, extending losses to a third day. Most sectors ended in the red, led by energy, while communication services saw the biggest gain.

Alphabet's class A and C shares were up 9.1% and 9%, respectively, the top gainers on both the Nasdaq and the S&P 500. A federal court judge ruled late Tuesday that the technology giant's Google ( GOOG ) unit will not be required to divest its Chrome web browser over competition concerns, and can continue making preload product payments to its distribution partners.

Apple ( AAPL ) climbed 3.8%, the best performer on the Dow.

"Google ( GOOG ) and Apple ( AAPL ) just got a massive win from the court's ruling that the ongoing $20 billion search deal between the two stalwarts will remain and not be barred in its current form," Wedbush Securities analyst Daniel Ives said in a note e-mailed to MT Newswires. "There will be some tweaks to the partnership but ultimately this removes a $25 overhang on Apple's ( AAPL ) stock in our view that the Street will digest very bullish as this ruling now is finally in the books after years of speculation."

Macy's (M) raised its full-year outlook on Wednesday as the department store operator reported fiscal second-quarter results above market expectations. The company's shares soared nearly 21%.

Campbell's (CPB) shares jumped 7.2%, the third-top gainer on S&P 500, as its fiscal fourth-quarter earnings exceeded Wall Street's forecast even as sales volume declined, while the packaged food company said on Wednesday that tariff-related headwinds will likely intensify this year.

Dollar Tree ( DLTR ) was the worst performer on the S&P 500, down 8.4%, after the discount retailer provided an earnings outlook below market estimates for the ongoing three-month period.

US Treasury yields were mostly lower, with the 10-year rate falling 3.9 basis points to 4.22% and two-year rate losing 1.8 basis points to 3.63%.

In economic news, US job openings declined in July for the second month in a row, government data showed, as markets awaited a key employment report due out on Friday.

Vacancies dropped to 7.18 million as of the last day of July from 7.36 million the month before, according to the Bureau of Labor Statistics' job openings and labor turnover survey. That's the lowest level since September 2024, CNBC and Reuters reported.

The BLS is expected to report on Friday that the US economy added 75,000 nonfarm jobs last month, compared with a 73,000 gain reported for July, according to a Bloomberg-compiled survey. The unemployment rate is projected to tick up to 4.3% from 4.2%.

"The July JOLTS report showed further signs of softening labor market conditions," Oxford Economics said. "The August employment report will be more pivotal than the JOLTS data in determining whether the (Federal Reserve) cuts rates at its upcoming meeting, but the picture of the labor market painted by the JOLTS along with our forecast for August employment points to a rate cut at the next meeting."

The probability that the Federal Open Market Committee will cut interest rates by 25 basis points at the Sept. 16-17 meeting rose to 95% Wednesday from 93% Tuesday, according to the CME FedWatch tool.

Fed Chair Jerome Powell in August indicated a potential monetary policy pivot, saying that downside risks to employment were rising, while the effects of tariffs on inflation will likely be short lived.

St. Louis Fed President Alberto Musalem said Wednesday that inflation is expected to begin converging toward policymakers' 2% target in the second half of 2026, though there's "a reasonable possibility" of more persistent price pressures as uncertainty around tariffs remain.

Fed Governor Christopher Waller, one of the two dissenters at July's meeting that left rates steady, told CNBC on Wednesday that the central bank should lower its benchmark lending rate later this month amid risks to the labor market.

Separately, Atlanta Fed President Raphael Bostic backed a 25 basis-point rate cut "over the remainder of this year," citing a slowdown in the labor market.

"With a significant loss of momentum in hiring as of late, the Fed is increasingly open to the prospect of a near-term rate cut," Stifel Chief Economist Lindsey Piegza said in note e-mailed to MT Newswires. "A weaker-than-expected payroll report will only compound the market's expectation for action later this month."

US economic activity and employment levels were little changed since July, while firms in most Fed districts expected price increases to continue in the coming months, the central bank said in its latest Beige Book released Wednesday.

"The latest Beige Book will only reinforce (Powell's) newfound concern about downside employment risks and, if affirmed by a weak August jobs report on Friday, could spur the first reduction in policy rates this year in two weeks," BMO Capital Markets Senior Economist Sal Guatieri said in a report.

West Texas Intermediate crude oil was down 2.5% at $63.93 a barrel in Wednesday late-afternoon trade.

Gold was up 0.8% at $3,619.80 per troy ounce, while silver rose 0.4% to $41.76 per ounce.