In brief
U.S. stock indices ended lower on Thursday as Alphabet’s shares fell over 12%, raising concerns about AI spending. The Nasdaq slid 1.38%, while the Dow and S&P 500 fell 0.25% and 0.30% respectively. Oil prices dipped amid hopes for renewed U.S.–Iran talks, and CNN reported the record‑size one‑day drop for Google’s parent company.
U.S. stock indices ended lower on Thursday as Alphabet’s shares dropped more than 12%, reigniting worries over the cost of artificial‑intelligence (AI) investment and lingering after the company reported third‑quarter revenue below expectations.
Market Impact
Xinhua reported that the Dow Jones Industrial Average fell 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. The Nasdaq Composite dropped 365.13 points, or 1.38 percent, to 26,184.72. Eight of the 11 primary S&P 500 sectors finished in the green, but losses were concentrated in technology‑related names rather than spreading broadly across the market.
Alphabet’s shares fell more than 12% after the company announced third‑quarter revenue of 127.58 billion dollars, up 25 percent year‑on‑year, yet below market expectations. Net income slipped to 26.17 billion dollars and the firm posted negative free cash flow of 9.07 billion dollars, all of which underscored investors’ concerns about the escalating cost of AI development.
Other companies contributed to the market’s downward move. Microsoft edged lower even as Azure cloud growth of 48 percent powered robust quarterly results. Caterpillar fell more than 9 percent, weighing on the Dow, while ServiceNow plunged about 27 percent and Marvell dropped 13 percent. Eli Lilly outperformed, adding more than 6 percent after raising its revenue outlook, whereas Amazon and Intel traded ahead of their results on Friday, trading lower after the close.
Oil, Geopolitics, and Record‑Size Decline
Oil prices settled lower on the day, with hopes that renewed U.S.–Iran peace talks could curb Middle East supply disruptions. Brent crude futures closed down 44 cents, or 0.38 percent, at 114.88 U.S. dollars a barrel, while West Texas Intermediate crude finished down 78 cents, or 0.76 percent, at 102 dollars a barrel.
CNN reported that Alphabet’s parent company experienced its worst single‑day decline on record, a drop larger than any day during recent decades. The article noted that shares tumbled more than 12% on Thursday, underscoring the severity of the market’s reaction to the company’s earnings miss and AI spending warnings.
