Alphabet's record drop drags Nasdaq lower
SPY•The Nasdaq fell 1.4% on Thursday after Alphabet shares dropped more than 12.5% on disappointing search advertising results and increased AI spending. The S&P 500 declined 0.3%, while the Dow fell 0.25% and the Russell 2000 rose 1%.
1. Nasdaq leads declines
The Nasdaq Composite fell 1.4% on Thursday as Alphabet's results renewed concerns about rising AI costs. Alphabet shares slid more than 12.5% after the company reported disappointing search advertising results and a surge in cash burn as AI-related spending accelerated.
2. Other markets mixed
The S&P 500 fell 0.3% and the Dow Jones Industrial Average declined 0.25%, while the Russell 2000 gained 1%. Healthcare was the best-performing S&P 500 sector, and communication services was the weakest.
3. Treasury yields ease
The 10-year Treasury yield fell to 4.95% from 5.05% late Wednesday as yields eased on apparent safe-haven demand. FHN Financial macro strategist Will Compernolle said the move at the U.S. equity-market open suggested a shift from stocks into fixed income.
