S&P 500, Nasdaq close higher, lifted by Alphabet rally, but economic concerns limit gain

The S&P 500 rose Wednesday, boosted by tech shares after a federal court decision in an Alphabet antitrust case fueled optimism that the tech giants will be able to weather regulatory threats.

The tech-heavy Nasdaq Composite gained 1.03% to end the day at 21,497.73, while the S&P 500 climbed 0.51%, to finish at 6,448.26. The Dow Jones Industrial Average lagged, falling 24.58 points, or 0.05%, to settle at 45,271.23.

Shares of the Google parent jumped 9.1% after a federal judge ruled Tuesday that Google can keep its Chrome browser but won’t be allowed to strike exclusive search deals and must share its search data. The decision avoided the worst-case outcome for the tech giant, and largely drew from the idea that artificial intelligence has provided more choice to consumers.

“This was clearly a clearing event for GOOGL shares, and we continue to like the stock,” Mark Mahaney, Evercore ISI head of internet research, said on CNBC’s “Squawk on the Street.” “This distraction is behind us. Now, you can focus on the fundamentals, and valuation, I think, is still highly attractive.”

The decision also means that Apple can continue to preload Google Search onto its iPhones, which is a lucrative arrangement for Apple. The company, which also is facing its own antitrust case, saw its stock rise 3.8%.