U.S. stocks soared Wednesday as the risk of Google’s bankruptcy prompted a pause in thinking as the Federal Reserve waited for further clues to a possible “soft landing.”
The Nasdaq Composite Index (^IXIC) pared previous losses to rise about 0.1%, and the S&P 500 (^GSPC) rose about 0.2%. The Dow Jones Industrial Average (^DJI) rose about 0.4%, or more than 150 points.
Stocks soared this week amid heated debate over economic conditions now that the Federal Reserve has finally eased policy. The decision to cut rates by as much as 50 basis points has heightened concerns that the market may not be aware of the risks. This has investors worried about a “no-landing,” where the economy continues to grow and inflation risks resurface.
The minutes of the Fed’s September meeting, scheduled for later Wednesday, will be scrutinized for clues about why one policymaker in particular opposed the size of the rate cut.
Read more: How Fed Rate Cuts Affect Bank Accounts, CDs, Loans, and Credit Cards
Meanwhile, investors are keeping an eye on news that the Justice Department is considering asking a judge to force Google to sell major businesses to correct its monopoly position. Shares of owner Alphabet (GOOG) fell in early trading after rising on a broad tech rally that powered Tuesday’s solid gains.
Live6 update
Wednesday, October 9, 2024, 8:00 a.m. (Pacific Daylight Time)
Weight Watchers stock continues to rise
WW International (WW) stock rose more than 2% today, extending gains from Tuesday after the company announced the addition of a combined GLP-1 prescription weight loss product.
The stock is up more than 80% in the past five days.
Wednesday, October 9, 2024 7:24 AM PDT
Fed’s Logan supports ‘gradual’ rate cuts after initial rate cut
Dallas Fed President Laurie Logan said Wednesday that she supports a more gradual rate cut as the central bank pursues policy.
“To best balance the risks against our dual mandate objectives, a gradual return to a normal policy stance would be appropriate going forward,” Logan said in a speech in Houston.
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Wednesday, October 9, 2024 6:45am PDT
Justice Department’s Google breakup relief plan draws tech industry attention
A new development in the U.S. Department of Justice’s battle with Google (GOOG, GOOGL) sent shockwaves through the tech industry on Wednesday.
Yahoo Finance’s Alexis Keenan reports:
The U.S. Department of Justice says in a new court filing that it may recommend breaking up Google (GOOG, GOOGL) as an antidote to unhealthy competition in the search engine market, as the U.S. government This shows how seriously they are working to curb the spread of the virus. .
In a 32-page document, Justice Department lawyers outlined a framework of options for D.C. District Court Judge Amit Mehta to consider, including: It also includes behavioral and structural remedies that prevent you from using products such as Chrome, Play, and Android.” ”
“The Justice Department’s radical and sweeping proposals risk harming consumers, businesses, and developers,” Google said in a blog post.
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Wednesday, October 9, 2024 06:34 PDT
Stock prices remain almost unchanged
US stocks stalled on Wednesday as the risk of a Google breakup prompted a pause in thinking as the Federal Reserve waited for further clues to a possible “soft landing.”
The Nasdaq Composite Index (^IXIC) and S&P 500 (^GSPC) fell just below flat, and the Dow Jones Industrial Average (^DJI) fell just over 0.1%.
Wednesday, October 9, 2024 06:22 PDT
TSMC third-quarter revenue up 40%, countering concerns about slowing AI spending
Taiwan Semiconductor Manufacturing (TSM) on Wednesday posted quarterly sales of NT$759.7 billion ($23.6 billion), beating the NT$748.3 billion expected in the Bloomberg consensus estimate.
U.S.-listed shares of the Taiwanese company that makes chips for Nvidia (NVDA) and Apple (AAPL) rose 0.7% in premarket trading.
Rival Samsung (005930.KS) fell nearly 2%.
TSMC’s third-quarter revenue increased 40% year over year and nearly 13% compared to the previous quarter. The results negate concerns about a slowdown in AI spending as companies continue to buy hardware to power their artificial intelligence generation tools. TSMC will release a full report on its third quarter financial results on October 17th.
Looking ahead, Wall Street analysts expect TSMC’s full-year sales to rise 30% from a year ago to NT$2.8 trillion ($87.4 billion). Approximately 94% of analysts recommend the stock as a buy and expect the U.S. listing price to rise to $215 per share over the next 12 months. Tuesday’s closing price was $197.91 per share.
Wednesday, October 9, 2024 05:52 PDT
Boeing withdraws contract proposal after union negotiations break down
Boeing Co.’s (BA) stock was set to open lower on Wednesday after negotiations with its machinists’ union broke down and the plane maker withdrew a proposed contract.
After the third round of negotiations, which included two days of negotiations this week, Boeing COO Stephanie Pope emailed employees saying, “At this time, there is no point in further negotiations and our offer has been withdrawn.” said.
Members of the International Association of Machinists and Aerospace Workers (IAM) have been on strike since September 13 after voting to reject a provisional labor contract.
The union said Boeing has rejected proposals to raise wages, provide vacation and sick leave, and has no intention of restoring benefits such as pension benefits.
The breakdown in labor negotiations comes on the same day that ratings agency S&P placed Boeing on CreditWatch, raising the possibility of a credit downgrade if the strike continues through the end of the year.
Boeing shares fell more than 1% in premarket trading.
