Alphabet Pulls Stocks Lower
Wall Street struggled on Thursday after Alphabet, Google’s parent company, fell more than 4%, pulling down the major indexes. The S&P 500 dropped 1.2%, the Dow Jones lost 606 points, and the Nasdaq slid 1.5%. Despite posting better-than-expected quarterly profits, Alphabet’s announcement that it could double its spending on equipment and investments to around $180 billion (€152bn) unsettled investors, exceeding analysts’ predictions and fueling concerns over rising tech sector costs.
Labor Market Weakness Adds Pressure
The market turmoil was compounded by signs of trouble in the US job market. Unemployment claims rose more than expected last week, and employers announced 108,435 planned layoffs in January — the worst January figure since 2009. At the same time, job postings fell to their lowest level in over five years. These developments pushed Treasury yields lower, with the 10-year yield dropping to 4.21%, as investors weighed the possibility of future Federal Reserve interest rate cuts to support the economy.
Commodities, Crypto, and Global Stocks Fluctuate
The sell-off extended beyond equities. Silver plunged 13.3% while gold fell 2.3% to $4,838.80 (€4,087.50) per ounce, following a period of dramatic swings. Bitcoin also tumbled below $68,000 (€57,432), dragging down stocks of crypto-linked firms such as Coinbase and Strategy.
Some companies fared better: Broadcom rose 3.7% on expectations of continued AI-driven spending, and McKesson jumped 16.8% after exceeding earnings forecasts. Overseas, European and Asian markets also declined. London’s FTSE 100 fell 0.9%, Germany’s DAX lost 0.9%, France’s CAC 40 dropped 0.7%, and South Korea’s Kospi tumbled 3.9%, with Samsung Electronics down 6% after a recent rally.
