Alphabet Shock Sends Wall Street Lower
US stocks fell sharply on Thursday after Alphabet shares dropped more than 4%, dragging the wider market down with them. The S&P 500 slid 1.2%, marking its sixth decline in seven sessions since reaching a record high. The Dow Jones Industrial Average lost 606 points, while the Nasdaq fell 1.5%.
Despite reporting quarterly profits that beat expectations, Alphabet spooked investors by warning that spending on equipment and long-term investments could surge to about $180 billion this year — far higher than analysts had anticipated. The news weighed heavily on sentiment, given Alphabet’s outsized influence on major indexes.
Job Market Data Fuels Economic Anxiety
Worries about the US economy deepened after fresh labour market data showed a bigger-than-expected rise in unemployment benefit claims. The report raised concerns that layoffs may be accelerating, pushing Treasury yields lower as investors bet the Federal Reserve may be forced to cut interest rates.
Separate figures added to the unease. Employers announced more than 108,000 planned job cuts last month, the worst January total since 2009, while job openings fell to their lowest level in over five years. The yield on the 10-year Treasury dropped to 4.21%, down from 4.29% the previous day.
Commodities, Crypto and Global Markets Sway
The turbulence spread beyond equities. Silver prices plunged more than 13% in their latest sharp swing, while gold fell 2.3% as investors pulled back after months of extreme gains. Bitcoin also tumbled, dropping below $68,000 from its October peak above $124,000, dragging down crypto-related stocks including Coinbase and Strategy.
Not all shares moved lower. Broadcom rose 3.7% on optimism around continued AI investment, while healthcare group McKesson surged nearly 17% after strong earnings. Overseas markets were less resilient, with losses across Europe and Asia. South Korea’s Kospi dropped almost 4%, while Samsung Electronics slid 6% just days after a strong rally.
