US stocks slide as Google parent's revenue miss revives AI spending jitters
US stocks drop after Alphabet's revenue miss sparks AI spending fears.
In brief
US stocks drop after Alphabet's revenue miss sparks AI spending fears. Alphabet's revenue miss and accelerated AI cash burn caused its shares to fall 13.2% as investors reassessed tech stocks amid AI spending concerns. Originally reported by Dawn.
US stock prices retreat
US stock prices retreated on Thursday as investors reassessed big tech’s massive AI spending spree after high-profile earnings, crucial inflation data and the US Federal Reserve’s policy decision.
Alphabet reports revenue miss
Alphabet’s quarterly results released late Wednesday showed a revenue miss compounded by accelerated ai-related cash burn.
Alphabet shares drop 13.2%
Alphabet’s shares slid 13.2% following its disappointing quarterly results.
Smallcap Russell 2000 rises
The smallcap Russell 2000 advanced 0.8 percent as investors shifted focus from tech stocks.
Semiconductor stocks fall
Semiconductor stocks dropped 2.0 percent as investors tried to distinguish companies that can fund ai ambitions from those that burn cash.
Federal Reserve holds rates steady
The US Federal Reserve held interest rates steady, acknowledging elevated price pressures but deciding to accumulate more information before next move.
Third-quarter GDP growth
The us economy grew at a faster-than-expected pace in the third quarter with price growth gaining heat due to a war-related oil supply crunch.
Stock index declines
The dow jones industrial average fell 315.36 points to 52,163.07, the sp 500 lost 48.73 points to .7,695.25 and the nasdaq composite lost 441.15 points to 26,108.35.
Tech sector under pressure
Communication services and tech sectors led the s&p 500 decline as 81 percent of companies beat earnings expectations.
Caterpillar shares fall
Caterpillar’s shares tumbled 9.5 percent after topping quarterly profit estimates but leaving growth targets unchanged.
Eli Lilly shares rise
Eli Lilly jumped 6.3 percent after lifting its revenue outlook on weight-loss drug sales.
Ford gains 2.9%
Ford gained 2.9 percent following its third-quarter revenue beat.
Merck shares rise
Merck advanced 4.4 percent after beating earnings expectations on cancer drug keytruda and hpv vaccine gardasil.
Software stocks decline
Software stocks were broadly weak with fortinet and servicenow dropping more than 20 percent each after quarterly results.
The one thing
Alphabet's revenue miss and accelerated AI cash burn caused its shares to fall 13.2% as investors reassessed tech stocks amid AI spending concerns.
