Alphabet Slide Sends Wall Street Lower
US markets took a sharp turn lower on Thursday after Alphabet shares fell more than 4%, dragging major indexes down with them. The S&P 500 dropped 1.2%, extending its losing streak to six sessions in the past week following a recent record high. The Dow Jones Industrial Average slid 606 points, while the Nasdaq fell 1.5% by late morning trading.
Alphabet weighed heavily on the market despite posting quarterly profits that beat expectations. Investors instead focused on the company’s warning that spending on equipment and long-term investments could jump to around $180 billion this year — far above analyst forecasts — raising fresh concerns about ballooning costs across the tech sector.
Job Market Concerns Hit Bonds and Confidence
Weak signals from the US labour market added to the pressure. Treasury yields fell after new data showed unemployment benefit claims rose more than economists expected, hinting that layoffs may be picking up pace. The yield on the 10-year Treasury dropped to 4.21%.
Separate figures painted a similarly cautious picture. US employers announced more than 108,000 planned job cuts last month — the highest January total since 2009 — while job openings fell to their lowest level in more than five years. The data has increased expectations that the Federal Reserve may need to cut interest rates to support growth, even as inflation risks linger.
Wild Swings Across Gold, Crypto and Global Stocks
Volatility rippled through commodities and digital assets. Silver plunged more than 13% in its latest dramatic swing, while gold fell 2.3% after weeks of sharp ups and downs. Bitcoin also slid heavily, dropping below $68,000 from its October peak above $124,000, pulling down crypto-linked stocks such as Coinbase and Strategy.
There were a few bright spots. Broadcom gained 3.7% on optimism around continued AI investment, while healthcare firm McKesson surged nearly 17% after strong earnings. Overseas markets were less resilient, with losses across Europe and Asia. South Korea’s Kospi fell almost 4%, and Samsung Electronics dropped 6% just days after a strong rally.
