Google Shares Plunge 18% Intraday as Inflation Cools and Fed Cut Odds Exceed 50%
Google shares slid 18% intraday to 100 as the Nasdaq fell 0.23% on uncertainty over AI-related spending. U.S. consumer prices rose less than expected in January, lifting June Federal Reserve rate-cut odds above 50% and supporting a modest rebound in trading.
1. Google Share Volatility
On Friday, Google stock tumbled as much as 18% intraday to a session low of 100 before stabilizing, tracking a 0.23% drop in the Nasdaq driven by uncertainty over massive AI spending. Major tech peers Nvidia and Apple each declined more than 2%, intensifying sector pressure.
2. Inflation Eases and Fed Outlook
January’s consumer price increase fell short of projections, boosting the probability of a June Federal Reserve rate cut to over 50%. The cooler inflation reading provided relief to equity markets, although weekly declines left the S&P 500 and Dow trading in narrow ranges.