Alphabet shares fall 13.2%, Nasdaq loses 1.66% — Dawn

Major US stock indexes declined after the quarterly report from Alphabet, Google’s parent company. Alphabet shares lost 13.2% after its revenue fell short of expectations and AI-related outflows accelerated. This was reported by Dawn.

The technology-heavy Nasdaq Composite fell 441.15 points, or 1.66%, to 26,108.35 points. The S&P 500 declined by 48.73 points, or 0.63%, to 7,695.25 points, while the Dow Jones Industrial Average lost 315.36 points, or 0.59%, falling to 52,163.07 points.

The market reassessed AI spending

Shares of semiconductor manufacturers fell by 2%, which could interrupt their four-day rally. Investors assessed which companies were able to finance large-scale artificial intelligence projects with their own funds and which needed borrowing to do so.

Meanwhile, the Russell 2000 small-cap index rose by 0.8%. Baird investment strategy analyst Ross Mayfield said that small companies outperforming on a day of market decline indicates that concerns about the AI sector do not mean problems for all market segments.

More current news is available on the UA.News Telegram channel Telegram.

Fed decision and corporate reports

On the previous day, the US Federal Reserve left interest rates unchanged, acknowledging that price pressures remained elevated. Data published on Thursday also showed that the US economy grew faster than expected in the third quarter, while the pace of price growth accelerated.

Of the 253 S&P 500 companies that have already released quarterly reports, 81% exceeded analysts’ expectations, according to LSEG data. Analysts expect the combined earnings of S&P 500 companies to increase by 31% year-on-year in the third quarter.

Caterpillar shares fell by 9.5%, although the company exceeded expectations for quarterly profit. Eli Lilly shares rose by 6.3%, Merck by 4.4%, and Ford by 2.9%. Fortinet and ServiceNow shares each lost more than 20% after their quarterly results.