The US Justice Department Investigates Google for Antitrust Violations
– The US Justice Department may force Google to divest parts of its business due to antitrust concerns.
– S&P 500 and Nasdaq 100: Despite market uncertainty, these indexes had a strong day on Tuesday, recovering from Monday’s losses.
– US-listed Chinese stocks like Alibaba, PDD Holdings, and JD.com experienced declines following a disappointing update from the National Reform Commission in China.
Market Update: Google Antitrust Concerns and Market Recovery
The major Wall Street Indexes fell in early European trade before recovering ahead of the US Open to trade flat on the day. Early losses were attributed to Alphabet’s Google as news broke on Tuesday that the US may ask a judge to force Google to divest parts of its business.
Google’s Antitrust Case Overview
– American authorities are looking at Google’s Chrome browser and Android OS, claiming they are used to maintain an illegal monopoly in online searches.
– A judge found in August that Google, which processes around 90% of US internet searches, had built an illegal monopoly.
– The Justice Department has proposed remedies that will likely affect Google’s revenue.
Market Sentiment and Fed Meeting Expectations
– S&P 500 and Nasdaq 100 posted a strong day on Tuesday, erasing Monday’s losses amidst choppy trading.
– The Fed minutes today are unlikely to impact markets significantly, but comments from Fed policymakers ahead of the meeting may have a larger influence.
– Markets are currently leaning towards a 25 bps cut from the Fed.
Chinese Stocks Decline Amidst National Reform Commission Update
– Chinese stocks listed in the US fell today following a disappointing update from the National Reform Commission in China.
– Alibaba Group, PDD Holdings, and JD.com experienced losses in response to the news.
Technical Analysis of S&P 500
– The S&P is trading at a key resistance area where the most recent retracement began.
– Yesterday’s bullish engulfing candle suggests buying pressure, supporting the overall bullish outlook discussed in the weekly market outlook.
– A break and daily candle close above 5760 may signal a continuation of the rally, with immediate resistance at 5760 and 5910.
In conclusion, the investigation into Google’s potential antitrust violations could have significant implications for the tech giant and the broader market. Investors should monitor the developments closely to assess the impact on Google’s business and the overall market sentiment. Additionally, the Fed meeting and ongoing market uncertainties will continue to influence trading in the coming days.