The Apple stock rose US$2 on the publication, rising to US$158, before settling back to US$156 after Dow Jones issued the correction.
The Apple-centric site 9to5mac was the first to break the news.
The story claimed that the late Steve Jobs had made a deal with Alphabet chief executive Larry Page before the former died in 2010.
What made the story even more unbelievable was that it claimed that the deal was due to close on Wednesday US time.
"The deal... gives each Google shareholder nine shares of Apple stock. Obviously Google will move into Apple's fancy headquarters," the story, bylined with the name Josee Rose, said.
It ended with the claim that "Google employees said 'Yay'."
A day trader based in Berlin, going by the Twitter handle Trader_53, also spotted that this was not the only glitch on the day.
Numerous others, like "Practice Headline 3, Still on Wednesday" were seen in a screenshot of the feed which he tweeted.
Dow Jones feed going wild pic.twitter.com/t8Eb8MBsMB— Trader 53 (@trader_53) October 10, 2017
Dow Jones later apologised for the error.
“Please disregard the headlines that ran on Dow Jones Newswires between 9:34am ET and 9:36am ET," the company said.
"Due to a technical error, the headlines were published. All of those headlines are being removed from the wires. We apologise for the error.”