Nasdaq slides over 1% as Alphabet results revive AI spending fears
SPY•The Nasdaq fell 1.64% as Alphabet shares dropped 13% after disappointing search advertising results and a surge in AI-related cash spending. The S&P 500 declined 0.51% and the Dow fell 0.31%.
1. Alphabet weighs on tech
Alphabet shares slid 13% and were on track for their steepest one-day decline on record after the company reported disappointing search advertising results and increased cash burn as AI spending accelerated. If losses held, Alphabet was set to lose more than $500 billion in market value, accounting for most of the Nasdaq-100's projected $693 billion decline.
2. Market and rate outlook
At 9:56 a.m. ET, the Nasdaq Composite was down 1.64%, the S&P 500 was off 0.51% and the Dow had fallen 0.31%. Fortinet dropped 21.7% after its third-quarter results, while ServiceNow fell 23.3% after missing profit estimates. Data showed US inflation rose in line with economists' estimates and the economy grew faster than expected in the third quarter; the Federal Reserve held rates steady on Wednesday.
