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Stock market today: Dow, S&P 500, Nasdaq futures stall with Fed and Google breakup in focus

Karen Friar
·Editor
Updated
12
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US stock futures stalled on Wednesday as the risk of a Google breakup prompted a pause for thought in the wait for more Federal Reserve clues to the chances of a "soft landing."

Futures on the Dow Jones Industrial Average (YM=F), the S&P 500 (ES=F), and the tech-heavy Nasdaq 100 (NQ=F) all hovered below the flat line, paring earlier premarket losses.

Stocks have whipsawed this week amid intense debate over the state of the economy now the Fed has finally eased up on policy. Its decision to cut by a jumbo 50 basis points raised concerns it might see risks the market could not. That has investors wondering about a "no landing," where the economy keeps growing and inflation risks once again emerge.

Minutes from the Fed's September meeting, due later on Wednesday, will be scoured for clues — especially as to why one policymaker dissented on the size of the cut.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

Meanwhile, investors are absorbing news that the DOJ is considering asking a judge to force Google to sell off key businesses to remedy its monopoly position. Shares of owner Alphabet (GOOG) slipped in premarket trading, after rising in a broader tech rebound that fueled Tuesday's solid gains.

Elsewhere in tech, Taiwanese chipmaker TSMC's (TSM) quarterly sales beat Wall Street estimates, in a sign of healthy AI demand. Shares of TSMC rose slightly, while its customer Nvidia's (NVDA) stock was up over 1%, building on gains.

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  • Ines Ferré

    Boeing withdraws contract proposal after union talks break down

    Boeing (BA) shares were set to open lower on Wednesday after negotiations with its machinist union broke down and the aircraft maker withdrew its contract proposal.

    Following a third round of bargaining talks which included two days of negotiations this week, Boeing chief operating officer Stephanie Pope told employees in an email "further negotiations do not make sense at this point and our offer has been withdrawn."

    Members of the International Association of Machinists and Aerospace Workers (IAM) have been on strike since September 13 after voting down a tentative labor contract.

    The union said Boeing refused to propose any wage increases, vacation or sick leave accrual, and would not reinstate a benefit pension, among other items.

    The labor talks breakdown occurred on the same day as rating agency S&P placed Boeing on CreditWatch, increasing the probability of a downgrade should the strike continue toward the end of the year.

    Boeing shares were trading down more than 1% in pre-market.

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