US stocks closed mixed, led by a surge in Alphabet shares after a US judge rejected a proposal to break up Google's parent and investor confidence in the possibility of a Federal Reserve (Fed) interest rate cut this month.
Alphabet shares jumped 9.1% after a court ruling that upheld Google's control over Chrome and Android, but blocked some exclusive contracts with device manufacturers and browser developers.
Apple shares rose 3.8% after the ruling ensured that the iPhone maker would continue to receive large payments from Google.
The S&P 500 index rose 0.51% to 32.72 points, the tech-focused Nasdaq rose 1.03% to 218.10 points, while the Dow Jones fell 0.05% to 24.58 points.
According to CME FedWatch, US interest rate futures now price a 96% chance that the Fed will cut interest rates by 25 basis points at the end of its two-day policy meeting on September 17.
Atlanta Fed President Raphael Bostic said a rate cut was likely, but gave no certainty about the timing.
Meanwhile, shares of discount retailer Dollar Tree fell 8.4% after its current-quarter profit forecast was lower than expected and tariffs are expected to increase operating costs.
With the U.S. second-quarter earnings season drawing to a close, investors are now focusing on third-quarter forecasts and risks from a tariff war waged by President Donald Trump.
Volume on U.S. exchanges was $14.95 billion, compared with a 20-day average of $16.18 billion.
