U.S. stocks cut losses and turned positive Wednesday, ahead of more clues on interest rates from the Federal Reserve.
At 1:05 p.m. ET (17:05 GMT), the Dow Jones Industrial Average gained 328 points, or 0.8%, the S&P 500 gained 0.5%, and NASDAQ Composite added 0.4%.
Fed minutes on tap
Markets were now awaiting more cues on U.S. interest rates, amid growing doubts over the Fed’s plans to cut rates significantly in the coming months.
The minutes of the Fed’s September meeting are due later on Wednesday, while several Fed officials are also set to speak.
Strong payrolls data released last week sparked doubts over just how much impetus the Fed has to keep cutting rates at a fast pace. Traders were seen pricing in an 81.1% chance for a 25 basis point reduction in November, and an 18.9% chance rates will remain unchanged, according to CME Fedwatch.
The Fed cut rates by 50 bps in September and signaled future cuts will still be dependent on inflation and the labor market.
The consumer price index for September is due on Thursday.
Google (NASDAQ:GOOGL) facing a possible break-up
Alphabet (NASDAQ:GOOG) fell 2% on news that the US Department of Justice is mulling possible sanctions against Google’s owner, following a landmark antitrust case that found the group guilty of abusing its dominant market position.
The DOJ is “considering behavioral and structural remedies” that would prevent Google from using products like its web browser, app store or operating system to advantage its search business over its competitors, according to a federal court filing on Tuesday.
“For more than a decade, Google has controlled the most popular distribution channels, leaving rivals with little-to-no incentive to compete for users,” the DOJ added.
Reddit Inc (NYSE:RDDT) rose more than 1% after Jefferies initiated coverage on the stock with a buy rating on expectations that high user growth could boost earnings.
Boeing Co (NYSE:BA) fell more than 2% as aircraft maker faces an ongoing strike from workers of the the International Association of Machinists union after withdrawing its contract offer to the union.
Arcadium Lithium (NYSE:ALTM) stock soared 31% after global miner Rio Tinto (NYSE:RIO) agreed to acquire its US peer in a $6.7 billion all-cash deal, according to a statement on Wednesday.
(Peter Nurse, Ambar Warrick contributed to this article.)
