US Stocks Slide on Tech Weakness
US stock indices fell on Thursday, with the S&P 500 down 0.3%, the Nasdaq sliding 1.4%, and the Dow losing 135 points, amid renewed concerns over the sustainability of the AI trade following disappointing results from some hyperscalers. Alphabet plunged 12.6% 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 4.2% and 3.6%, respectively. Microsoft lost 0.2% despite reporting solid cloud sales. Elsewhere, Caterpillar tumbled 9.4% after forecasting “moderate” sales growth in the fourth quarter. Eli Lilly jumped 6.5% after raising its revenue outlook on strong demand for its weight-loss drugs, while Merck advanced 3.7% after lifting its guidance. On the data front, the US economy grew at a faster-than-expected 3.4% in the third quarter, while PCE inflation accelerated in September.
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US stock indices fell on Thursday, with the S&P 500 down 0.3%, the Nasdaq sliding 1.4%, and the Dow losing 135 points, amid renewed concerns over the sustainability of the AI trade following disappointing results from some hyperscalers. Alphabet plunged 12.6% 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 4.2% and 3.6%, respectively. Microsoft lost 0.2% despite reporting solid cloud sales.
Elsewhere, Caterpillar tumbled 9.4% after forecasting “moderate” sales growth in the fourth quarter. Eli Lilly jumped 6.5% after raising its revenue outlook on strong demand for its weight-loss drugs, while Merck advanced 3.7% after lifting its guidance. On the data front, the US economy grew at a faster-than-expected 3.4% in the third quarter, while PCE inflation accelerated in September.