Alphabet Slide Sets the Tone
Wall Street moved sharply lower on Thursday after shares in Alphabet fell more than 4%, pulling major US indexes into the red and unsettling markets well beyond equities. The S&P 500 dropped 1.2%, marking its sixth loss in seven sessions since hitting a record high. The Dow Jones Industrial Average fell 606 points, while the Nasdaq slid 1.5% by mid-morning in New York.
Alphabet weighed heavily on the market despite reporting quarterly profits that beat expectations. Investors instead focused on the company’s warning that spending on equipment and other investments could surge to about $180 billion this year, far above analysts’ forecasts. The news reignited concerns about rising costs across the tech sector.
Jobs Data Fuels Rate Cut Bets
Adding to the pressure, fresh US labour market data rattled confidence. Treasury yields fell after reports showed a larger-than-expected jump in weekly unemployment benefit claims, hinting that layoffs may be accelerating. The yield on the 10-year Treasury slipped to 4.21% from 4.29%.
Separate figures pointed to a worrying trend. US employers announced more than 108,000 job cuts last month, the worst January total since 2009, while job openings fell to their lowest level in over five years. Together, the data strengthened expectations that the Federal Reserve could be forced to cut interest rates to support growth, even as inflation risks linger.
Commodities and Crypto Swing Wildly
The turbulence spilled into commodities and digital assets. Silver plunged more than 13% in its latest dramatic swing, while gold fell 2.3% after weeks of extreme volatility that had seen prices nearly double over the past year. Bitcoin also slid sharply, dropping below $68,000 after peaking above $124,000 in October, dragging down crypto-related stocks such as Coinbase and Strategy.
Not all stocks fell. Broadcom rose 3.7%, benefiting from continued enthusiasm around artificial intelligence spending, while healthcare group McKesson surged nearly 17% after strong earnings. Overseas markets were less forgiving, with major indexes across Europe and Asia falling, including a near-4% drop in South Korea’s Kospi as Samsung Electronics reversed recent gains.
