Alphabet Stumble Pulls Wall Street Lower
US markets slid sharply on Thursday after Alphabet shares dropped more than 4%, setting off a broad sell-off across major indexes. The S&P 500 fell 1.2%, marking its sixth decline in seven sessions since hitting a record high. The Dow Jones Industrial Average was down 606 points, while the Nasdaq lost 1.5% by mid-morning trading.
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 long-term investments could surge to about $180 billion this year — far above analyst forecasts — raising concerns about rising costs across the tech sector.
Job Market Jitters Hit Bonds and Confidence
Weak US labour market data added to the uneasy mood. Treasury yields fell after new figures showed a larger-than-expected jump in unemployment benefit claims, fuelling fears that layoffs may be accelerating. The yield on the 10-year Treasury slipped to 4.21%.
Further reports deepened the concern. Employers announced more than 108,000 planned job cuts last month, the worst January figure since 2009, while job openings fell to their lowest level in over five years. The data has strengthened expectations that the Federal Reserve may be forced to cut interest rates to support the economy, despite the risk of reigniting inflation.
Volatility Spreads to Gold, Crypto and Global Stocks
Market turbulence spilled into commodities and digital assets. Silver plunged more than 13% in its latest sharp swing, while gold fell 2.3% after weeks of extreme volatility. Bitcoin also slid heavily, dropping below $68,000 from its October peak above $124,000, dragging down crypto-related stocks such as Coinbase and Strategy.
Not all shares ended in the red. Broadcom rose 3.7% on optimism around continued AI investment, while healthcare group McKesson surged nearly 17% after strong earnings. Overseas markets were less resilient, with losses across Europe and Asia. South Korea’s Kospi dropped nearly 4%, while Samsung Electronics fell 6% just days after a sharp rally.
