Wall Street ends lower as Alphabet revenue miss revives AI capex jitters
SPY•U.S. stocks fell, with the Nasdaq down 1.37%, after Alphabet’s revenue miss and accelerated AI-related cash burn weighed on technology shares. The Dow slipped 0.25% and the S&P 500 lost 0.30%, while third-quarter GDP growth of 3.4% topped expectations.
1. Technology shares weigh
All three major U.S. stock indexes ended lower as investors reassessed big tech’s AI spending after Alphabet reported disappointing quarterly revenue and accelerated AI-related cash burn. Alphabet shares fell 12.6%, and the Nasdaq dropped 1.37%; semiconductor stocks fell 1.4%, ending a four-day winning streak.
2. Economic and earnings data
The Dow fell 0.25% to 52,342.56 and the S&P 500 lost 0.30% to 7,720.39. Third-quarter GDP grew at a 3.4% annualized pace, faster than analysts expected. Of the 253 S&P 500 companies that had reported quarterly results, 81% beat analyst expectations, and analysts expected aggregate earnings growth of 31.0% year over year.
3. Company movers
Caterpillar fell 9.3% despite topping quarterly profit estimates, while Eli Lilly rose 6.6% after raising its revenue outlook and Ford gained 12.4% following a revenue beat. Fortinet and ServiceNow each dropped more than 20% after reporting results. Amazon fell 6.5% in extended trading after giving disappointing fourth-quarter sales guidance.
