By Megan Leonhardt | Wednesday, September 3

One Stock To Rule Them All. The success of the stock market today  seemed to rise and fall on Alphabet's fate. 

A federal judge ruled Tuesday that the search giant wouldn’t have to sell its Chrome web browser. That prompted shares of the Google parent to gain 9.1%, giving the company its largest one-day market value gain ever. 

No surprise, then, that the tech-heavy Nasdaq Composite gained 1% on the day, while the S&P 500 closed up 0.5%. The blue-chip Dow Jones Industrial Average still fell 25 points, or 0.1%.

The judge also ruled that Alphabet could continue making payments to Apple to ensure Google is the default search provider on iPhones. Shares of Apple rose 3.8%.

As my colleague Connor Smith points out, the Dow doesn’t include Alphabet, which explains its more muted performance. And while Apple is listed on the Dow, the index is weighed by stock price rather than market cap, so Apple’s pull is overshadowed by the likes of Salesforce, Travelers, and Sherwin-Williams.

Meanwhile, the fallout continues from an appellate decision that came late Friday, ruling that President Donald Trump’s use of emergency powers to impose tariffs was illegal.

The administration is appealing the ruling to the Supreme Court, seeking an expedited ruling. “Tariffs are vital to this country,” Trump said during a press briefing on Wednesday. “If we don’t win that case, we are going to suffer greatly.”

As my colleague Reshma Kapadia reports: 

The lower-court ruling raises fresh questions about the dozens of framework trade agreements announced in recent weeks, the prospects for tariff refunds and other types of tariffs, and the sustainability of tariff revenue flowing into the Treasury.

The decision pertains to about half the tariff revenue collected in the government’s current fiscal year, ending Sept. 30, and 70% of the projected tariff revenue in 2026, according to Barclays.

The uncertainty of the latest legal ruling (and corresponding appeal) is likely weighing on stocks—and businesses. 

“The limbo is extended,” says Christopher Smart, managing partner at Arbroath Group. “Everyone is going to slow-roll whatever they can in terms of negotiations and wait until the Supreme Court decision—and there it’s a coin toss.”

DJIA: -0.05% to 45,271.23
S&P 500: +0.51% to 6,448.26
Nasdaq: +1.02% to 21,497.73

The Hot Stock: Alphabet +9.1%
The Biggest Loser: Dollar Tree -8.4%

Best Sector: Communication Services +1.7%
Worst Sector: Energy -2.2%

Trump's Fed Pick Steps into the Senate Spotlight

The Senate Banking Committee is set to consider Stephen Miran’s nomination to serve on the Federal Reserve’s Board of Governors. Central bank independence and proposed restructuring plans will likely be the main themes of the conversation. 

The committee will hold a confirmation hearing tomorrow at 10 a.m. ET on five nominations to federal positions, including Miran. President Trump nominated Miran, who is currently serving as chair of the White House Council of Economic Advisers, in early August to complete the term of Fed Gov. Adriana Kugler, which expires at the end of January. Kugler resigned on Aug. 1, giving Trump his first opportunity to reshape the central bank.

Trump is also reportedly considering Miran for the seat currently held by Gov. Lisa Cook, who Trump is attempting to remove over allegations of mortgage fraud. Cook has contested the firing and sued to block the termination last week. A federal judge is currently weighing whether to issue a temporary restraining order that would keep Cook employed as the case moves forward. 

During Thursday’s Senate hearing, senators will likely put questions to Miran focused on his views of Fed independence and his previous proposals to dramatically restructure the central bank.

“Independence of monetary policy is a critical element for its success,” Miran said in written testimony made public on Wednesday. “The Federal Open Market Committee is an independent group with a monumental task, and I intend to preserve that independence and serve the American people to the best of my ability.”

Since his inauguration, Trump and his allies have attempted to strongarm policymakers into lowering interest rates. In removing Cook, Trump could nominate more governors who would vote with his agenda. 

Democrats—who wanted to postpone the hearing in the aftermath of Cook's termination—are expected to largely oppose Miran’s nomination. It will be important to determine whether Republicans on the committee are unified in support behind Miran's nomination—and if they see Trump's attempt to fire Cook as a serious threat to the Fed's independence. 

Follow along with live coverage of tomorrow's hearing here.