US equity futures have dropped following news that the Department of Justice (DOJ) is considering a breakup of Alphabet’s Google search engine. This potential antitrust crackdown on Big Tech has caused Asian markets to slump, with Chinese A-shares suffering their biggest one-day plunge since February 2020. Investors now demand stimulus actions from Beijing, rather than just words. As of 8:00 am ET, S&P and Nasdaq futures were down 0.1%, but off session lows. Oil prices failed to rebound, and slid to session lows, down 0.5% despite nervousness around Israel's response and anticipation on China stimulus.
In premarket trading, Boeing slid 1% after S&P said the company could be downgraded to junk. Alphabet slipped about 1% after the US Justice Department told a federal judge it’s considering recommending that Google be forced to sell off parts of its operations. Other notable premarket movers include Astera Labs, Crinetics Pharmaceuticals, Helen of Troy and Zeta Global.
The prospect of an actual breakup push is weighing on sentiment, according to Kevin Thozet, a member of the investment committee at French asset manager Carmignac. However, he downplayed the eventual impact, because “at the end of the day, when we are looking at individual values of those separate business lines within Google, investors could be better off.”
Investors are also monitoring clues on the outlook for interest rates. The 10-year US Treasury yield hovered above the key 4% level after diminished expectations for interest-rate cuts triggered a run of selling in previous days. The latest speeches from Fed Vice Chair Philip Jefferson and Atlanta Fed chief Raphael Bostic pointed to a measured approach.
In Europe, the Stoxx 600 index was flat despite Chinese stocks listed onshore suffering their biggest drop in more than four years. Real estate and automobile shares gained, while banks and travel stocks are the biggest laggards. Among individual movers, luxury goods firm Kering SA jumped as much as 1.3% on the news of a new
US equity futures have dropped following news that the Department of Justice (DOJ) is considering a breakup of Alphabet’s Google search engine. This potential antitrust crackdown on Big Tech has caused Asian markets to slump, with Chinese A-shares suffering their biggest one-day plunge since February 2020. Investors now demand stimulus actions from Beijing, rather than just words. As of 8:00 am ET, S&P and Nasdaq futures were down 0.1%, but off session lows. Oil prices failed to rebound, and slid to session lows, down 0.5% despite nervousness around Israel's response and anticipation on China stimulus.
In premarket trading, Boeing slid 1% after S&P said the company could be downgraded to junk. Alphabet slipped about 1% after the US Justice Department told a federal judge it’s considering recommending that Google be forced to sell off parts of its operations. Other notable premarket movers include Astera Labs, Crinetics Pharmaceuticals, Helen of Troy and Zeta Global.
The prospect of an actual breakup push is weighing on sentiment, according to Kevin Thozet, a member of the investment committee at French asset manager Carmignac. However, he downplayed the eventual impact, because “at the end of the day, when we are looking at individual values of those separate business lines within Google, investors could be better off.”
Investors are also monitoring clues on the outlook for interest rates. The 10-year US Treasury yield hovered above the key 4% level after diminished expectations for interest-rate cuts triggered a run of selling in previous days. The latest speeches from Fed Vice Chair Philip Jefferson and Atlanta Fed chief Raphael Bostic pointed to a measured approach.
In Europe, the Stoxx 600 index was flat despite Chinese stocks listed onshore suffering their biggest drop in more than four years. Real estate and automobile shares gained, while banks and travel stocks are the biggest laggards. Among individual movers, luxury goods firm Kering SA jumped as much as 1.3% on the news of a new
