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Google-parent Alphabet down on potential DOJ action
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Boeing ( BA ) falls after talks with union halted
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Fed minutes due at 2:00 p.m. ET
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Futures down: Dow 0.01%, S&P 500 0.05%, Nasdaq 0.18%
(Updated at 8:14 a.m. ET/1214 GMT)
By Lisa Pauline Mattackal and Pranav Kashyap
Oct 9 (Reuters) -
Futures tracking the Dow and the S&P 500 pointed to a steady
open on Wednesday as investors awaited the minutes of the
Federal Reserve's latest meeting, while Alphabet shares slipped
after the U.S. said it was considering breaking up Google.
Shares of Alphabet were down 0.6% in premarket
trading after the U.S. Department of Justice said it may ask a
judge to force Google to divest parts of its business, including
the Chrome internet browser and Android operating system, to
curtail its search monopoly.
Futures tracking the tech-heavy Nasdaq 100 lagged
futures for the other two main U.S. indexes.
"(This is) just a reflection of how super-sized Big Tech has
become. Any uncertainty there will feature into the rest of the
market," said Ben Laidler, head of equity strategy at Bradesco
BBI.
Dow E-minis were down 6 points, or 0.01%, S&P
500 E-minis were down 3 points, or 0.05%, and Nasdaq 100
E-minis were down 36.25 points, or 0.18%.
Indexes closed higher on Tuesday after rebounding from
Monday's selloff, with technology stocks leading the charge as
U.S. Treasury yields eased.
Trading has been choppy this week, with investors
adjusting their rate-cut expectations, seeking new catalysts for
a clearer market direction. Key inflation data on Thursday and
the upcoming third-quarter corporate earnings season are now in
focus.
Minutes from the Fed's September meeting, when policymakers
kicked off monetary policy easing with a 50-basis-point rate
cut, are due at 2:00 p.m. ET.
"We expect the FOMC minutes and tomorrow's CPI to be
reassuring and calm these market nerves around the ability of
the Fed to keep cutting interest rates," Laidler said.
"Anything in line with consensus will calm markets,
which have been second guessing how much the Fed can cut."
Commentary from a number of Fed officials including Philip
Jefferson, Thomas Barkin, Raphael Bostic and Mary Daly are also
expected through the day.
Investors are overwhelmingly pricing in a 25-basis-point
reduction in borrowing costs at the Fed's November meeting, with
some now seeing a slight chance the central bank will keep rates
on hold, according to the CME FedWatch tool.
Prior to the release of strong employment data last week,
markets were leaning towards an outsized 50-bps cut in November.
Among single stocks, Boeing ( BA ) lost 1.6% after talks
between the company and its key manufacturing union broke down,
sending a strike into its fourth week, with no sign of
resolution.
Shares of Arcadium Lithium ( ARLTF ) soared 30.7% after Rio
Tinto said it would acquire the miner for $6.7 billion.
Rio Tinto's U.S.-listing slipped 1.1%.
U.S.-listed shares of Chinese firms dropped for a second
day, tracking a slide in domestic stocks as investors continued
to question if China would announce new stimulus measures.
Alibaba Group fell 3.2%, PDD Holdings ( PDD ) lost
3.7% and JD.Com dropped 4.6%. The iShares MSCI China
exchange-traded fund lost 3.4%.
Additionally, investors were keeping a watch on the impact
from Category 5 Hurricane Milton as well as the escalating
conflict in the Middle East.