US Stock Futures Fall on Potential Google Breakup: Markets Wrap

(Bloomberg) — US futures slipped following a report that the US Justice Department is considering a breakup of Alphabet Inc.’s Google search engine, signaling an antitrust crackdown on Big Tech.

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The S&P 500 contracts fell 0.3%, while Nasdaq 100 futures dropped 0.5% after a rebound on Wall Street driven by gains for Nvidia Corp. shares. The 10-year Treasury yield hovered above the key 4% level after diminished expectations for interest-rate cuts triggered a run of selling in previous days. Europe’s benchmark Stoxx 600 index was little changed.

Traders will be watching inflation data on Thursday for signs that the Federal Reserve will continue cutting rates. The latest speeches from the central bank official pointed to a measured approach, with Fed Bank of Boston President Susan Collins noting that rate cuts should be careful and data-based.

Meanwhile, China’s CSI 300 Index declined as much as 7.4% before paring some of its losses after authorities announced a briefing on Saturday about fiscal policy.

Concerns have mounted that the latest burst of China stimulus may be insufficient to convince investors of a sustainable rally in the equity market. Chinese tourists shelled out less money during their long holiday while a news report indicated the nation needs to introduce policies to stabilize growth and expectations. That’s a further sign Beijing is attempting to build confidence among investors.

The National Development and Reform Commission, China’s economic planning agency, announced that a meager 200 billion yuan ($28 billion) in spending would be advanced from next year, after analysts estimated a fiscal package worth as much as 3 trillion yuan in the pipeline.

“For the markets to sustain enthusiasm, far more aggressive gestures for the new fiscal package or market stabilization mechanism might be necessary,” said Homin Lee, senior macro strategist at Lombard Odier. “It’s possible that these gyrations persist until the National People’s Congress Standing Committee meeting and also the US election in early November.”

Key events this week:

Fed minutes, Wednesday
Fed’s Lorie Logan, Raphael Bostic, Austan Goolsbee and Mary Daly speak, Wednesday
US CPI, initial jobless claims, Thursday
Fed’s John Williams and Thomas Barkin speak, Thursday
JPMorgan, Wells Fargo kick off earnings season for the big Wall Street banks, Friday
US PPI, University of Michigan consumer sentiment, Friday
Fed’s Lorie Logan, Austan Goolsbee and Michelle Bowman speak, Friday

Some of the main moves in markets:

Stocks

The Stoxx Europe 600 was little changed as of 8:12 a.m. London time
S&P 500 futures fell 0.3%
Nasdaq 100 futures fell 0.5%
Futures on the Dow Jones Industrial Average fell 0.2%
The MSCI Asia Pacific Index fell 0.2%
The MSCI Emerging Markets Index fell 0.5%

Currencies

The Bloomberg Dollar Spot Index rose 0.1%
The euro fell 0.2% to $1.0953
The Japanese yen was little changed at 148.30 per dollar
The offshore yuan was little changed at 7.0694 per dollar
The British pound fell 0.3% to $1.3060

Cryptocurrencies

Bitcoin fell 0.2% to $62,222.91
Ether fell 0.3% to $2,434.28

Bonds

The yield on 10-year Treasuries was little changed at 4.01%
Germany’s 10-year yield declined two basis points to 2.23%
Britain’s 10-year yield was little changed at 4.18%

Commodities

Brent crude rose 0.6% to $77.62 a barrel
Spot gold fell 0.4% to $2,610.79 an ounce

This story was produced with the assistance of Bloomberg Automation.