ECB keeps Europe steady as 13% Google plunge fans AI jitters
SPY•European stocks and bonds held gains after the ECB kept its key rate at 2.5%, while Alphabet plunged more than 13% on concerns about AI-related cash spending. ECB President Christine Lagarde said she would leave her post in February.
1. ECB holds rates
European stocks and government bonds held gains after the European Central Bank kept its key rate at 2.5%. The euro and euro zone government bond yields edged lower. ECB President Christine Lagarde confirmed she would leave her post in February.
2. Alphabet slides
Alphabet plunged more than 13% in early US trading after results showed disappointing performance in its core search business and a sharp acceleration in cash spending as it expands AI. The Nasdaq opened 1.3% lower. Amazon and Intel were due to report after US markets closed.
3. Markets weigh risks
US Treasury yields eased despite data showing faster-than-expected economic growth and a pickup in inflation. Brent crude fell nearly 2% to $113.15 a barrel after reports of efforts to revive peace negotiations with Iran.
