Alphabet Drop Triggers Broad Market Decline
Wall Street tumbled on Thursday after Alphabet, Google’s parent company, fell more than 4%, dragging major indexes lower. The S&P 500 dropped 1.2%, the Dow Jones lost 606 points, and the Nasdaq fell 1.5%, marking the sixth decline in seven trading sessions since recent record highs.
Despite beating profit expectations for the quarter, Alphabet rattled investors by announcing that its spending on equipment and other investments could jump to roughly $180 billion (€152bn) this year — far above analysts’ estimates of $119 billion (€100.5bn).
Job Market Weakness Adds Pressure
Concerns about the US labor market added to market jitters. Weekly unemployment claims rose more than expected, and January saw 108,435 announced layoffs — the highest January total since 2009. Meanwhile, job postings fell to a five-year low in December.
The weak labor market could pressure the Federal Reserve to consider interest rate cuts to support growth, even as inflation remains a risk. Treasury yields reacted sharply, with the 10-year yield falling to 4.21%.
Commodities, Crypto, and Global Stocks Feel the Impact
Commodities and digital assets also suffered. Silver plunged 13.3%, and gold dropped 2.3% to $4,838.80 (€4,087.50) per ounce after months of volatile swings. Bitcoin fell below $68,000 (€57,432), dragging down crypto-linked stocks such as Coinbase and Strategy.
Some companies bucked the trend, including Broadcom, which rose 3.7% on expectations of continued AI-driven spending, and McKesson, which jumped 16.8% after reporting strong earnings. Overseas, major indexes also slipped, with London’s FTSE 100 down 0.9%, Germany’s DAX off 0.9%, and South Korea’s Kospi plunging 3.9%, led by a 6% drop in Samsung Electronics.
