Tatton says Alphabet cashflow concerns weigh on US tech stocks
Tatton said Alphabet shares fell 13% Thursday after third-quarter 2026 cash outflows reached $9.1 billion, prompting broader US technology selling. It also cited uncertainty over AI investment, interest rates and oil prices.
1. Tech shares under pressure
Tatton said investors are prioritizing cash flow over AI spending and that markets could struggle until uncertainty around the US midterm election clears. Alphabet shares fell 13% Thursday as third-quarter 2026 cash outflows reached $9.1 billion, triggering broader selling in US technology stocks.
2. AI and rate concerns
Anthropic's IPO, scheduled for mid-November, will test confidence in AI investment at a reported valuation of $1.5 trillion to $2 trillion, despite billion-dollar losses. Markets are pricing in a US interest rate increase in December and potentially two more in 2027, with inflation remaining above 2%.
3. Oil and bond yields
Crude oil reached $113 per barrel amid rumors of a post-election strike on Iran, which could renew pressure on government bond yields.
