In brief
The Dow, S&P 500 and Nasdaq all fell on Thursday, with the tech‑heavy Nasdaq dropping more than 1% after Alphabet’s shares plunged 12%. Investors were worried that companies are pouring money into expensive AI tools. Oil prices fell a touch as better trade prospects outweighed Middle‑East concerns.
U.S. stocks slid on Thursday, with the Dow Jones dropping 132.54 points to 52,342.56, the S&P 500 falling 23.59 points to 7,720.39, and the Nasdaq Composite falling 365.13 points to 26,184.72. The biggest loss was in the tech sector, where Alphabet’s shares fell over 12% after the company reported third‑quarter revenue of $127.58 billion, up 25% from a year earlier but below analysts’ expectations.
Alphabet’s disappointing earnings sent a warning flag to investors about the high cost of artificial‑intelligence programs. The company’s net income was $26.17 billion, and its free cash flow turned negative at $9.07 billion. The drop was the largest portion of the Nasdaq’s decline and the main driver behind the broader market slide.
Other technology names also suffered. Microsoft edged lower even as its Azure cloud grew 48%, while ServiceNow plunged about 27% and Marvell dropped 13%. Caterpillar and Amazon fell ahead of their results, and Intel slipped after the close.
In contrast, fourth‑sector lights brightened: eight of the 11 S&P 500 sectors finished in the green, showing that the losses were mainly concentrated in technology stocks rather than the larger market.
Oil prices moved lower as optimism about a potential U.S.‑Iran peace deal outweighed concerns over Middle‑East supply disruptions. Brent crude futures settled at $114.88 a barrel, down 44 cents, and West Texas Intermediate settled at $102.00, down 78 cents.
Eli Lilly, however, added more than 6% after raising its revenue outlook. Investors will keep an eye on how AI costs affect tech earnings as the week moves forward.
