Wall Street ends lower as Alphabet revenue miss revives AI capex jitters
SPY•US stocks fell Thursday, with the Nasdaq down 1.36% after Alphabet’s revenue miss and increased AI-related cash burn. The S&P 500 slipped 0.31% and the Dow fell 0.25%, while third-quarter GDP grew at a faster-than-expected 3.4%.
1. Indexes close lower
All three major US indexes ended lower Thursday, with the Nasdaq losing 1.36% to 26,188.08. The S&P 500 fell 0.31% to 7,721.02, and the Dow dropped 0.25% to 52,345.80. The small-cap Russell 2000 advanced, while semiconductor stocks ended a four-day winning streak.
2. Earnings and economic data
Alphabet shares slumped after the company reported a quarterly revenue miss and accelerated AI-related cash burn, weighing on the communication services sector. Fortinet and ServiceNow each fell more than 20% after their results. Third-quarter GDP grew at a 3.4% rate, surpassing analyst expectations, while price growth continued to gain heat. Of the 253 S&P 500 companies that had reported, 81% beat analyst expectations; analysts expected aggregate earnings growth of 31% year over year.
