# 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.
- Title: US stocks slide as Google parent's revenue miss revives AI…
- Summary: 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%…
- Keywords: alphabet, nasdaq, google, ai spending, revenue miss, stock prices, tech stocks, federal reserve, third quarter, quarterly results, news, politics
- Source: Dawn — https://dawn.com/news/2040760/us-stocks-slide-as-google-parents-revenue-miss-revives-ai-spending-jitters
- Author: Reuters
- Published: 2026-10-29T18:46:15+00:00
- Read time: 2 min
- Topics: alphabet, nasdaq, google, ai spending, revenue miss, stock prices, tech stocks, federal reserve, third quarter, quarterly results, news, politics
## 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.
## Key takeaway

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.