By Chelsey Dulaney
The U.S. threat to break up Google is putting a damper on the tech rally.
Shares of parent company Alphabet dropped early Wednesday after Justice Department antitrust enforcers said they were considering splitting up Google. That is one of several moves they are considering to end what a judge said was Google's unlawful monopoly in search.
The unraveling of China's stimulus-driven stock rally also keeps reverberating. U.S.-traded stocks in Chinese companies like Alibaba were poised for another big drop.
Investors have been largely upbeat lately, with strong economic data offsetting rising tensions in the Middle East and uncertainty over the U.S. elections. On Tuesday, a tech-driven rally left the S&P 500 within striking distance of a new all-time record.
In recent trading:
--Futures tied to major indexes edged lower.
--Chip stocks rallied. Taiwan's TSMC on Wednesday reported sales jumped 40% in September, compared to the same month last year. Nvidia shares gained 1.5% premarket.
--Treasury yields were broadly steady at slightly over 4%.
--Chinese stocks had another roller-coaster day: The Shanghai Composite dropped 6.6% and its Hong Kong equivalent shed 1.4%.
--Brent crude prices edged up toward $78 a barrel.
Up ahead:
--Minutes from the Federal Reserve's September meeting, where it kicked off its rate-cutting campaign with a bold half-point reduction, are due at 2 p.m. ET.
--The decision wasn't unanimous, with the first dissent from a Fed governor since 2005.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
October 09, 2024 06:15 ET (10:15 GMT)
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