Key Takeaways
- The Federal Trade Commission (FTC) has launched an investigation into Amazon (AMZN) and Alphabet's Google (GOOGL, GOOG) over their search advertising practices, probing whether they misled advertisers on terms, pricing, and ad auctions.
- U.S. equity markets saw a mixed open today, with the Dow Jones Industrial Average down 99.84 points (0.22%) at 46,008.16 and the S&P 500 down 2.28 points (0.03%) at 6,585.19, while the Nasdaq rose 40.41 points (0.18%) to 22,083.49.
- Morgan Stanley economists have significantly revised their forecast, now expecting the Federal Reserve to implement four consecutive 25-basis-point rate cuts through January, driven by a weakening labor market and softer inflation.
- A Canadian delegation engaged in positive talks with China regarding the ongoing canola dispute, potentially paving the way for future trade discussions, despite China extending its anti-dumping investigation until March 2026.
The U.S. Federal Trade Commission (FTC) has initiated an investigation into Amazon (AMZN) and Alphabet's Google (GOOGL, GOOG) concerning their search advertising practices. The probe, conducted by the FTC's consumer protection unit, aims to determine if the tech giants misled advertisers regarding the terms and pricing of ads placed on their platforms. Specific areas of inquiry include Amazon's ad auctions and the disclosure of "reserve pricing," as well as Google's internal pricing processes and whether it increased ad costs without proper disclosure. This marks a new phase of regulatory scrutiny for these major technology firms.
On the market front, U.S. indices experienced a mixed performance after the market open today. The Dow Jones Industrial Average fell by 99.84 points, or 0.22%, settling at 46,008.16. Similarly, the S&P 500 saw a slight decline of 2.28 points, or 0.03%, reaching 6,585.19. In contrast, the technology-heavy Nasdaq Composite posted gains, rising 40.41 points, or 0.18%, to 22,083.49. This mixed trading comes as investors largely anticipate a Federal Reserve interest rate cut next week, with futures markets indicating a high probability of a 25-basis-point reduction.
In international trade news, a Canadian delegation, led by Parliamentary Secretary Kody Blois and including Saskatchewan Premier Scott Moe, concluded positive discussions with Chinese officials regarding the ongoing canola dispute. The talks aimed to address duties imposed on Canadian canola products, a measure widely seen as a response to Canada's tariffs on Chinese electric vehicles. While the discussions open a path for future trade negotiations, China has extended its anti-dumping investigation into Canadian canola seed imports until March 9, 2026, citing the complexity of the case. This extension provides a window for a potential resolution, a critical need for the Canadian canola industry, which saw exports to China total $4.4 billion in 2024.
Looking ahead at monetary policy, Morgan Stanley economists have significantly updated their outlook for the Federal Reserve's actions. The firm now projects the Fed will implement four consecutive 25-basis-point rate cuts through January, totaling a full percentage point reduction. This revised forecast is primarily driven by mounting evidence of a weakening U.S. labor market and softer-than-anticipated underlying inflation. The first of these cuts is widely expected at the upcoming Federal Open Market Committee (FOMC) meeting on September 16-17.
Meanwhile, the latest edition of the weekly LiveSquawk Commodity Corner newsletter highlights various key commodities including 10-Year US Treasury Notes, silver, platinum, palladium, copper, aluminum, zinc, and TTF LNG. Broader commodity market trends suggest that gold and natural gas prices may see increases in 2025, while oil and copper could face downward pressure. European natural gas (TTF) prices, for instance, have already rebounded from their 2025 lows due to resurfacing supply concerns. Investor interest in precious metals remains evident, with gold and silver ETFs experiencing robust demand in August.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.