A Potentially Historic Drop for Alphabet's Stock Drags the US Market Lower
- The Dow Jones Industrial Average and Nasdaq Composite opened lower on Thursday, Oct 29, as Alphabet results rekindled investor worries about soaring AI-related costs. The Nasdaq Composite dropped 1.31%, while the Dow fell 0.74%.
- Following the Federal Reserve's Wednesday decision to hold interest rates unchanged, investors assessed fresh Personal Consumption Expenditures Price data. The Fed delayed any borrowing cost changes until after next week's midterm elections.
- Alphabet shares slid 13% as AI-related spending accelerated, while Caterpillar weighed on the Dow with an 8.0 per cent decline. ServiceNow dropped 23.3 per cent and Fortinet slipped 21.7 per cent after reporting third-quarter results.
- Tech-Heavy indices suffered as the Nasdaq Composite shed 1.31% to 26,201.823, while the US500 fell 0.57% to 7,699.61. The Philadelphia Semiconductor index dropped 1.8 per cent after gaining for four straight sessions.
- Angelo Kourkafas, senior global investment strategist at Edward Jones, said resilient economic growth and inflation "reinforce the expectation that October was a skip rather than a hold for the Fed." Traders expect a rate hike in December.
44 Articles
44 Articles
Nasdaq 100 Falls as AI Trade Shows New Cracks
A global rally in technology shares faltered as disappointing earnings from two industry heavyweights revived doubts over whether billions of dollars in artificial-intelligence spending will deliver sufficient returns. Google parent Alphabet sank a record 13% on a sales miss, while Microsoft is looking to raise at least $25 billion from a US investment-grade bond sale. Amazon and Intel are slated to report results after Thursday's closing bell. …
The tech-heavy New York stock market opened lower as Alphabet's third-quarter revenue fell short of market expectations and capital expenditures surged 114%. Semiconductor stocks also showed weakness, but European markets closed higher. Personal consumption expenditure figures met expectations.
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