Nasdaq Composite recovers losses as Alphabet surge offsets Treasury yield pressure

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Sholanke Dele

04.09.2025

Nasdaq Composite recovers losses as Alphabet surge offsets Treasury yield pressure — Google legal ruling boosts the Nasdaq Index

The Nasdaq Composite Index is showing signs of recovery after a volatile start to the week.

On Tuesday, the index fell sharply, dropping 1.9% from the August close near 21,450 to a low of 21,033. The pressure came as the 30-year Treasury yield jumped to a one-month-high, driven by revived fiscal concerns after a court ruling deemed most of President Trump’s tariffs illegal. Higher yields once again highlighted the strain on equities, particularly on growth-oriented sectors that dominated the Nasdaq.

- Nasdaq recovers from seven-day low after Alphabet shares rally on legal ruling.

- Index tests 21,450 resistance as megacap gains offset Treasury yield pressure.

- Investors watch JOLTS data while Nasdaq technicals show rebound strength building.

However, sentiment shifted later on Tuesday as attention moved from bond market stress to a major legal development in the technology sector. A Washington judge ruled that Google would not be required to sell its Chrome browser, though the company must share data with rivals. This outcome was interpreted as a significant win for Google and by extension its parent Alphabet, sparking a sharp rebound in megacap stocks. GOOGL surged more than 6% in premarket trading the following day, while Apple rose over 3%. Their combined weight lifted the broader Nasdaq, helping it recover from a seven-day low at the Fibonacci 61.8% retracement level of 21,030 to close near 21,290.

Nasdaq price dynamic (June - Sept 2025). Source: Tradingview

By Wednesday, September 3, Nasdaq futures extended those gains, advancing another 0.7% in premarket trade to approach the 21,450 mark. This move effectively erased the losses caused by the spike in Treasury yields and positioned the index back near its late August highs. The renewed strength highlights how quickly sentiment can shift when legal or policy outcomes affect large-cap stocks that hold heavy influence over the index.

Nasdaq investors eye JOLTS data for confirmation of labor market resilience

Technical conditions are also at play. The Nasdaq is now testing resistance from the 20 EMA on the four-hour chart around 21,450, which coincides with the recovered pre-selloff level. A successful break above this zone could open the path toward last week’s high near 21,740. On the downside, near-term support is situated at the 0.382 Fibonacci retracement level at 21,330. Holding this level would give buyers a base to sustain the rebound and potentially build further gains.

Investors will be watching the upcoming Job Openings and Labor Turnover Survey data for confirmation on the labor market’s health. Strong figures could temper rate cut expectations and weigh on sentiment, while softer results may reinforce the bullish tone in equities. For now, the index is balancing supportive momentum from tech sector gains against the lingering headwind of elevated yields, setting up for another pivotal trading session.

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