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Alphabet down on potential DOJ action
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Fed minutes due at 2:00 p.m. ET
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Futures: Dow down 0.05%, S&P 500 down 0.04%, Nasdaq down
0.07%
(Updated at 6:55 a.m. ET/10:55 GMT)
By Lisa Pauline Mattackal and Pranav Kashyap
Oct 9 (Reuters) -
Stock index futures were little changed on Wednesday as
investors awaited the minutes of the Federal Reserve's latest
meeting for clues on the policy path, while Alphabet dipped
after the U.S. said it was considering breaking up Google.
Shares of Alphabet fell 1.2% 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.
Dow E-minis were down 23 points, or 0.05%, S&P
500 E-minis were down 2.25 points, or 0.04%, and Nasdaq
100 E-minis were down 13.25 points, or 0.07%.
Indexes closed higher on Tuesday after rebounding from
Monday's selloff, with technology stocks leading the charge as
U.S. Treasury yields eased.
This week's trading has been particularly volatile, with
investors adjusting their expectations for rate cuts, 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.
"The tone of the Fed minutes should not change expectations
of further rate cuts. The Fed is still scrambling to catch up
with inflation slowing in the U.S. and started cutting rates
late, but expectations about the pace of easing may be set by
the minutes," said Paul Donovan, chief economist at UBS Global
Wealth Management.
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 cut
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, shares of Arcadium Lithium ( ARLTF )
soared 31.1% 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 2.9%, PDD Holdings ( PDD ) lost
3.6% and JD.Com dropped 4.4%.
Additionally, investors were also keeping a watch on the
impact of Category 5 Hurricane Milton as well as the escalating
conflict in the Middle East.