US STOCKS-Wall Street Slides as Alphabet Revenue Miss Revives AI Capex Jitters
Alphabet’s revenue miss and higher AI spending revived concerns about megacap earnings, while the Nasdaq fell 1.66% and the S&P 500 lost 0.63%, according to LSEG.
- On Thursday, Alphabet shares plunged nearly 14 per cent in New York after the Google parent reported a revenue miss, wiping around £406 billion from its market value in one of Wall Street's biggest single-day routs.
- The company's quarterly report released late Wednesday revealed profits fell 25 per cent to £20 billion, missing Wall Street forecasts as Alphabet raised AI infrastructure spending to close to £40 billion.
- All three major US stock indexes fell Thursday, with the Nasdaq Composite losing 1.66 per cent and the S&P 500 declining 0.63 per cent, while tech and communication services sectors led decliners amid AI-driven spending concerns.
- "A drop this size blows a big hole in all the major indices, it's not a pretty picture," said Neil Wilson, an investor strategist at Saxo, as Fortinet and ServiceNow shares each dropped more than 20 per cent.
- Federal Reserve policymakers held rates steady on Wednesday, citing "elevated" price pressures, while Thursday's economic data showed the US economy grew faster than expected in the third quarter amid persistent systemic inflation.
12 Articles
12 Articles
A potentially historic drop for Alphabet's stock drags US market lower
NEW YORK — A potentially historic drop for Alphabet’s stock is dragging the U.S. market lower Thursday after the company behind Google and YouTube reported weaker growth for the summer than analysts expected. The report underscored worries about whether all its huge investments in artificial-intelligence technology will pay off. The S&P 500 fell 0.6 percent toward its first loss in four days, even though the majority of stocks within the index a…
Wall Street slides as Alphabet revenue miss revives AI capex jitters
By Stephen Culp and Shashwat Chauhan NEW YORK, Oct 29 (Reuters) - US stock prices retreated on Thursday, with investors reassessing big tech's massive AI spending spree as they digested high-profile earnings, crucial inflation data and the US Federal R...
In Mexico, the BMV has a 0.51 percent advance at the start of the opening, while the BIVA indicator earns 0.46 percent.
Nasdaq 100 drops 1.5% after Alphabet, Google's matrix, and Microsoft reported a lower capex than expected
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