US stock futures took a breather on Wednesday as concerns about the possibility of a Google breakup and the uncertainty surrounding the Federal Reserve’s next move left investors in a cautious state.
Futures on the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all traded slightly below the flat line, after paring earlier losses during premarket trading.
Investors are grappling with the aftermath of the Fed’s recent decision to cut interest rates by 50 basis points. While this move was intended to support the economy, it has raised fears about the Fed potentially seeing risks that the market is not prepared for. The possibility of a “no landing” scenario, where the economy continues to grow but inflation risks return, is now on investors’ radars.
All eyes are now on the minutes from the Fed’s September meeting, set to be released later on Wednesday. Analysts will be looking for any clues as to why one policymaker dissented from the decision to cut rates by such a large margin.
In addition to the Fed news, investors are also digesting reports that the Department of Justice is considering measures to potentially force Google to divest certain businesses to address concerns about its monopoly position. This news has weighed on shares of Google’s parent company, Alphabet, which slipped in premarket trading.
On the tech front, Taiwanese chipmaker TSMC reported quarterly sales that beat Wall Street’s expectations, signaling strong demand for artificial intelligence technology. TSMC’s stock rose slightly, while tech giant Nvidia saw its shares climb over 1% in early trading, extending gains from the previous session.
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