Alphabet Slide Drags Wall Street Lower
US markets moved sharply lower on Thursday after Alphabet shares sank more than 4%, setting off a wider sell-off across equities and other asset classes. The S&P 500 dropped 1.2%, putting it on course for its sixth decline in seven sessions since reaching a record high. The Dow Jones Industrial Average fell 606 points, while the Nasdaq slipped 1.5%.
Despite posting stronger-than-expected quarterly profits, Alphabet weighed heavily on the market after warning that spending on equipment and infrastructure could surge to around $180 billion this year, far above forecasts. The prospect of sharply rising costs unsettled investors already nervous about lofty valuations in big tech.
Job Market Worries Push Yields Down
Concerns deepened after fresh data pointed to growing strain in the US labour market. Treasury yields fell after weekly jobless claims rose more than economists expected, fuelling fears that layoffs may be picking up pace. The yield on the 10-year Treasury slid to 4.21% from 4.29% the day before.
Separate figures added to the unease. Employers announced more than 108,000 job cuts last month, the worst January showing since 2009, while job openings fell to their lowest level in over five years. The weakness has strengthened expectations that the Federal Reserve could eventually cut interest rates to support the economy, even as inflation risks remain.
Wild Swings Hit Commodities and Crypto
Volatility was even more dramatic outside equities. Silver plunged more than 13% in its latest sharp reversal, while gold fell 2.3% after weeks of extreme price swings that had seen it nearly double over the past year. Bitcoin also tumbled, dropping below $68,000 from its October peak above $124,000, dragging down crypto-linked stocks such as Coinbase and Strategy.
Not all companies were caught in the downdraft. Broadcom rose 3.7% as investors bet on continued AI-driven spending, while healthcare group McKesson surged nearly 17% after strong earnings. Overseas, markets were weaker across Europe and Asia, with South Korea’s Kospi sliding almost 4% as Samsung Electronics gave up recent gains.
