In brief
Dow, S&P 500 and Nasdaq all fell Thursday as Alphabet’s shares plunged over 12 percent following an earnings miss that sparked AI spending fears. Technology names took the biggest hits while oil prices also eased, reflecting wider market uncertainty.
U.S. stocks ended lower on Thursday as Alphabet’s shares dropped more than 12 percent, sparking renewed worries about the high costs of corporate AI investments and pushing the Nasdaq, Dow and S&P 500 lower.
The Nasdaq Composite fell 365.13 points, or 1.38 percent, to 26,184.72. The Dow Jones Industrial Average slipped 132.54 points, or 0.25 percent, to 52,342.56, while the S&P 500 declined 23.59 points, or 0.30 percent, to 7,720.39.
Eight of the 11 primary S&P 500 sectors finished in the green, but losses were centered in technology‐related names. Alphabet’s shares plunged after the company reported a third‑quarter revenue of 127.58 billion dollars, a 25 percent year‑on‑year rise that fell short of expectations, and a net income of 26.17 billion dollars with negative free cash flow of 9.07 billion dollars. Microsoft edged lower despite strong Azure growth, Caterpillar fell over 9 percent, ServiceNow slid about 27 percent, Marvell dropped 13 percent, and Eli Lilly added more than 6 percent following a revenue outlook lift. Amazon and Intel also fell ahead of their earnings releases.
Oil prices eased, with Brent crude futures settling down 44 cents to 114.88 dollars a barrel and West Texas Intermediate futures down 78 cents to 102 dollars a barrel, as hopes of renewed U.S.–Iran peace talks offset concerns about Middle‑East supply disruptions. Reuters noted that investors were reassessing the scale of big tech’s AI spending spree in light of the earnings miss.
