US Stocks Fall, Alphabet Tumbles
US stocks fell on Thursday, with the S&P down 0.5%, the Nasdaq sliding 1.4% and the Dow losing 310 points, as renewed concerns over the sustainability of the AI trade weighed on sentiment following disappointing results from some hyperscalers. Alphabet plunged more than 12% after missing earnings and revenue expectations, dragging the communication services sector sharply lower, while technology stocks also underperformed. Amazon and Intel, both due to report results after the closing bell, fell 3.1% and 2.2%, respectively. Caterpillar tumbled nearly 12% after forecasting “moderate” sales growth in the fourth quarter. In contrast, Microsoft gained 0.8% on solid cloud sales. Eli Lilly jumped 7.3% after raising its revenue outlook on the back of strong demand for its weight-loss drugs, while Merck advanced 3.3% after lifting its guidance. Meanwhile, fresh economic data showed that the US economy expanded at a faster-than-expected 3.4% in Q3, while PCE inflation accelerated in September.
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US stocks fell on Thursday, with the S&P down 0.5%, the Nasdaq sliding 1.4% and the Dow losing 310 points, as renewed concerns over the sustainability of the AI trade weighed on sentiment following disappointing results from some hyperscalers. Alphabet plunged more than 12% after missing earnings and revenue expectations, dragging the communication services sector sharply lower, while technology stocks also underperformed. Amazon and Intel, both due to report results after the closing bell, fell 3.1% and 2.2%, respectively. Caterpillar tumbled nearly 12% after forecasting “moderate” sales growth in the fourth quarter.
In contrast, Microsoft gained 0.8% on solid cloud sales. Eli Lilly jumped 7.3% after raising its revenue outlook on the back of strong demand for its weight-loss drugs, while Merck advanced 3.3% after lifting its guidance. Meanwhile, fresh economic data showed that the US economy expanded at a faster-than-expected 3.4% in Q3, while PCE inflation accelerated in September.