Investing.com -- U.S. stocks slipped lower Wednesday, handing back some of the previous session's gains, ahead of more signals on interest rates from the Federal Reserve.
At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average dropped 30 points, or 0.1%, S&P 500 fell 3 points, or 0.1%, and NASDAQ Composite slipped 32 points, or 0.2%.
The main Wall Street indexes rose on Tuesday, buoyed chiefly by technology stocks, with market darling Nvidia (NASDAQ:NVDA) gaining 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) was in the spotlight upon the 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.
Arcadium Lithium (NYSE:ALTM) stock soared 30% 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.
Crude rebounds ahead of US inventories
Oil prices fell Wednesday, adding to the prior session’s steep losses, as a large increase in US inventories raised concerns about US demand.
By 09:35 ET, the Brent contract dropped 1.9% to $75.69 per barrel, while U.S. crude futures (WTI) traded 1.9% lower at $72.19 per barrel.
Both contracts slumped more than 4% on Tuesday on disappointment over the lack of new fiscal stimulus measures from top oil importer China.
Data from the American Petroleum Institute, released on Tuesday, showed US oil inventories grew by 10.9 million barrels in the past week, much more than expectations for an increase of 1.95 million barrels.
Official data from the Energy Information Administration are due later in the session, and could spark concerns that US fuel demand was cooling, especially as the country’s South grapples with a series of devastating hurricanes.
(Ambar Warrick contributed to this article.)