Market optimism surged on Wednesday as investors digested the potential breakup of tech giant Google, putting a temporary hold on concerns about the Federal Reserve’s next move. The Nasdaq Composite and S&P 500 indices both saw modest gains, with the Dow Jones Industrial Average rising over 150 points. This comes after a tumultuous week in the markets, marked by intense debate over the state of the economy following the Fed’s decision to cut interest rates by 50 basis points.
Investors are eagerly awaiting the release of minutes from the Fed’s September meeting, which could provide valuable insight into the central bank’s thinking on the economy and inflation. Meanwhile, the US Department of Justice’s consideration of forcing Google to divest key businesses has sent shockwaves through the tech sector, with Alphabet shares slipping in early trading.
In other news, WW International’s stock continued its meteoric rise, gaining over 2% on the day and more than 80% over the past five days, following the company’s announcement of a new prescription weight loss offering. Dallas Fed President Lorie Logan also weighed in, suggesting that a more gradual approach to rate cuts may be necessary to balance the risks to the economy.
Taiwan Semiconductor Manufacturing Co. posted strong quarterly revenues, beating expectations and easing concerns about a slowdown in AI spending. The company’s US-listed stock edged up 0.7% in premarket trading, while rival Samsung fell nearly 2%.
In other corporate news, Boeing’s shares were set to open lower after negotiations with its machinist union broke down, leading the aircraft maker to withdraw its contract proposal. The labor talks breakdown has increased the probability of a credit downgrade, according to rating agency S&P.
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