Wall Street slides as Alphabet revenue miss revives AI capex jitters
SPY•SPY•SPY•SPY•US stocks fell after Alphabet's revenue miss and accelerated AI-related cash burn sent its shares down 13.2%. The Dow lost 0.59%, the S&P 500 fell 0.63% and the Nasdaq dropped 1.66%, while third-quarter GDP growth of 3.4% beat expectations.
All three major US indexes fell on Thursday, with the Nasdaq down 1.66% as technology shares slid. The Russell 2000 advanced 0.8%, while semiconductor stocks fell 2.0%.
Alphabet shares dropped 13.2% after the company reported a revenue miss and accelerated AI-related cash burn. Investors reassessed technology companies’ spending on AI, while software stocks also weakened after quarterly results from Fortinet and ServiceNow.
A first reading showed third-quarter GDP grew 3.4%, faster than analysts expected. Of the 253 S&P 500 companies that had reported quarterly results, 81% beat analyst expectations; analysts expected aggregate earnings growth of 31.0% year over year.
