Alphabet plunges 12.64% and drags the Nasdaq down 1.38%; S&P 500 -0.30%, Dow -0.25%
Alphabet's revenue miss and cash burn revived worries about AI spending, but health care, financials and small caps rose, keeping the broader market's loss small.
U.S. stocks ended lower on Thursday as Alphabet’s sharp drop weighed on technology shares.
| Index | Close | Day |
|---|---|---|
| S&P 500 | 7,720.39 | -0.30% |
| Dow Jones Industrial Average | 52,342.56 | -0.25% |
| Nasdaq Composite | 26,184.72 | -1.38% |
Alphabet closed at $283.82, down 12.64%, after revenue missed estimates and capex of more than $51 billion turned free cash flow negative; AP said it was heading for its worst day since it began trading more than 20 years ago. ServiceNow (-26.95%) and Fortinet (-20.09%) extended software’s slide, and Caterpillar fell 9.25%. Eli Lilly rose 6.57% and led health care, the best sector. Reuters’ preliminary data showed the Russell 2000 posting a solid gain. Index closes are final closes as reported by AP.
Why it matters: the drop was concentrated in companies whose AI spending is running ahead of cash flow, while most other stocks rose, a sign investors are rotating rather than leaving the market. Third-quarter GDP growth of 3.4% (BEA) also kept the economy’s backdrop firm.
WMR data: the 10-year Treasury yield eased to 4.99% and the VIX fell 2.72% to 16.45; see Market Pulse.
Next: Intel and Amazon reported after the bell; Friday brings the employment cost index at 8:30 AM ET.
→ Alphabet's 12.6% Plunge Pulls the Nasdaq Down 1.38% as AI Spending Fears Return
Corrections
- 2026-10-30 · Replaced Reuters' preliminary index closes with the final closes reported by AP: S&P 500 7,720.39 (-0.30%), Dow 52,342.56 (-0.25%), Nasdaq Composite 26,184.72 (-1.38%).
Sources
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