📄 Full report · Evening · 10 min · 3-minute summary available
Alphabet's 12.6% Plunge Pulls the Nasdaq Down 1.38% as AI Spending Fears Return
Data as of: 2026-10-29 4:26 PM ET (index closes per AP final; stock closes are regular-session closes; after-hours moves per Reuters shortly after the releases)
Key takeaways
- Alphabet fell 12.64% to $283.82 after its revenue miss and cash burn, dragging the Nasdaq down 1.38% to 26,184.72.
- After the bell, Intel fell more than 20% on a weak fourth-quarter guide and Amazon more than 7% as quarterly capex hit $77.3 billion.
- Next: Friday's 8:30 AM employment cost index, the Bank of Japan decision overnight, and Apple's results on Monday.
☰ Contents
Wall Street delivered its verdict on Alphabet today, and it was one of the harshest in the company’s two decades as a public stock.
Alphabet fell 12.64% after revenue and advertising missed estimates and more than $51 billion of quarterly capital spending pushed free cash flow negative. AP said it was heading for its worst day since it began trading more than 20 years ago. The Nasdaq lost 1.38%, while the S&P 500 slipped only 0.30% because health care, financials and small caps rose.
After the bell the pressure moved to two more AI spenders. Intel fell more than 20% when its fourth-quarter guide came in entirely below estimates, and Amazon dropped more than 7% even though AWS grew 39%. Friday’s open will show whether investors keep separating AI spending that pays from spending that only burns cash.
What matters today
The market punished Alphabet’s cash burn, not AI itself
Alphabet’s slide was the session. Its revenue of $127.6 billion and advertising sales trailed estimates, and capex above $51 billion turned free cash flow negative for a second straight quarter (AP). The stock closed at $283.82, down 12.64%, on volume 5.3 times its normal level.
The selling was narrow. Reuters said investors were sorting companies that can fund AI from their own cash flow from those that need to borrow or burn cash, and its preliminary data showed the Russell 2000 posting a solid gain. Microsoft, which showed contracted demand behind its spending, closed nearly flat at $530.14 (-0.16%), and Meta rose 1.96%.
Why it matters: the AI trade now has a test investors can measure each quarter: capex divided by cash flow. WMR data: Alphabet is down 12.46% over one week and 30.5% below its 52-week high, deeper than any other Big Tech name we track; see Alphabet and the U.S. Stock Screener.
Money rotated into health care and defensives
Health care was the best of the 11 sector funds, up 2.4%, led by Eli Lilly’s 6.57% jump to $1,373.00 after it lifted its full-year revenue outlook. Real estate, consumer staples and utilities each rose more than 1.5%. Communication services fell 1.87% and technology 1.18%, the only two sectors that lost ground.
Software took a second blow. ServiceNow closed down 26.95% and Fortinet 20.09% after their outlooks, and Salesforce fell 4.63% in sympathy. Chip stocks ended a four-day winning streak (Reuters): the Philadelphia Semiconductor Index lost 1.42%, Marvell 13.24% on reports that it is in advanced talks to buy Lumentum, and Micron 4.98%.
U.S. sector ETFs 1D performanceComputed from raw prices · U.S. close of 2026-10-29Tap for details
| Name | Last | 1D | 1W | 1M | 6M | 1Y |
|---|---|---|---|---|---|---|
| Tech (XLK) | 188.74 | -1.2% | +3.5% | -3.6% | +18.3% | +25.0% |
| Comm. (XLC) | 101.21 | -1.9% | -5.8% | -8.8% | -13.1% | -13.2% |
| Cons. Disc. (XLY) | 116.20 | +0.8% | +1.0% | +6.8% | -1.8% | -3.6% |
| Financials (XLF) | 56.91 | +1.4% | +0.5% | +6.6% | +9.2% | +7.4% |
| Health Care (XLV) | 184.04 | +2.4% | +1.5% | +9.3% | +26.1% | +26.5% |
| Energy (XLE) | 68.71 | +0.4% | +1.7% | +11.7% | +15.2% | +57.3% |
| Industrials (XLI) | 170.13 | +1.0% | +2.0% | +1.9% | -2.5% | +10.0% |
| Materials (XLB) | 52.53 | +1.3% | +1.6% | +7.9% | +2.1% | +17.9% |
| Utilities (XLU) | 43.14 | +1.5% | +0.6% | +9.4% | -7.9% | -4.3% |
| Cons. Staples (XLP) | 88.18 | +1.5% | -2.0% | +9.4% | +4.6% | +12.4% |
| Real Estate (XLRE) | 43.06 | +2.2% | +1.3% | +5.3% | -3.0% | +3.0% |
Intel’s guide and Amazon’s capex set up Friday
Intel’s third quarter beat: revenue rose 21% to $16.5 billion and non-GAAP EPS of $0.52 topped LSEG’s $0.40 (Reuters). But PC chip sales fell 5% to $8.1 billion, below the $8.98 billion estimate, and the fourth-quarter guide of $15.0 billion to $16.0 billion sits entirely below the $17.07 billion consensus. Shares had closed at $92.07 (-3.62%) before falling more than 20% in extended trading.
Amazon’s AWS grew 39% to $46.0 billion, ahead of the $45.61 billion LSEG estimate, and operating income rose to $28.1 billion from $17.4 billion. The concern is cash: capex reached $77.3 billion in the quarter, trailing free cash flow swung to an outflow of $42.4 billion, and the fourth-quarter sales guide’s midpoint of $243.5 billion is below the $244.51 billion estimate (Reuters). Andy Jassy said he expects AWS revenue to grow more than 40% in both 2027 and 2028.
WMR data: Amazon had already fallen 4.25% in the regular session to $243.79 and sits 15.1% below its 52-week high; see Amazon and the Earnings Calendar.
After-hours earnings
| Company | Results | Outlook | Stock |
|---|---|---|---|
| Amazon (AMZN) Q3 | Net sales $201.9B (+12%); AWS $46.0B (+39%); GAAP EPS $1.89 vs. $1.95 a year ago | Q4 net sales $240.0B-247.0B; operating income $28.5B-33.5B; 2026 cash capex about $220B | down more than 7% after hours |
| Intel (INTC) Q3 | Revenue $16.5B (+21%); non-GAAP EPS $0.52 (GAAP $0.60); non-GAAP gross margin 44.1% | Q4 revenue $15.0B-16.0B; non-GAAP EPS $0.25; gross margin 38.0% | down more than 20% after hours |
| Gilead (GILD) Q3 | Revenue $8.30B (+7%); non-GAAP EPS $2.55 (GAAP $1.94); HIV sales $6.25B (+18%) | 2026 product sales raised to $31.0B-31.3B | After-hours and next-day reaction in the morning report |
Results come from the companies’ releases and SEC filings; estimates from LSEG as reported by Reuters. Amazon’s year-ago EPS included $9.5 billion of pre-tax gains on its Anthropic stake, which is why EPS fell while operating income rose 61%. Intel’s GAAP EPS includes a $1.0 billion mark-to-market gain that non-GAAP excludes. Starbucks, Reddit and Sandisk also reported after the close; their numbers will be in the morning report.
Our last calls: how they played out
| What we flagged | What happened | Market reaction |
|---|---|---|
| Q3 GDP and PCE at 8:30 AM | GDP grew 3.4%, above the 3.2% Reuters poll; September PCE prices 3.6% and core 3.1%, in line (BEA, Fox Business) | 10-year yield fell to 4.99% |
| Whether Alphabet’s selling would spread | It stayed narrow: Alphabet -12.64%, Amazon -4.25%, Meta +1.96%, Microsoft -0.16% | S&P 500 -0.30%, Nasdaq -1.38% |
| Amazon’s AWS growth vs. capex | AWS +39% beat, but capex of $77.3B and a soft guide midpoint weighed | Down more than 7% after hours |
Of the six calls due today, five hit and one missed. Hits: the Nasdaq closed below 26,549.85, ServiceNow fell more than 5%, Eli Lilly and Alphabet moved in the expected directions, and the ECB held at 2.50%. Miss: Microsoft closed at $530.14, just under the $531.01 line, after its premarket gain faded. Details are on the track record.
What to watch
| Time (ET) | Event |
|---|---|
| Overnight | Bank of Japan decision; our call is a hold at 1.25% |
| Fri 8:30 AM | Q3 employment cost index (BLS) |
| Fri 9:30 AM | Intel and Amazon open after their after-hours drops |
| Mon 11/2, after the close | Apple fiscal Q4 results |
| Tue 11/3 | U.S. midterm elections; AMD reports after the close |
- If Intel’s after-hours drop holds into the open → check: whether other PC and server chip names (AMD, Nvidia) follow, or the selling stays specific to Intel’s guide
- If Amazon recovers part of its after-hours loss → check: whether investors weigh the 40%-plus AWS growth target over the $42.4B cash outflow
- If the employment cost index runs hot → check: the 2-year yield and December hike odds, now 79.6% on CME FedWatch
Not a forecast — what to check depending on the outcome.
Our calls for Friday (logged on the track record before the results): Intel closes Oct 30 below Thursday’s $92.07; Amazon closes Oct 30 below Thursday’s $243.79.
Market data
Close (10/29)
| Index | Close | Day |
|---|---|---|
| S&P 500 | 7,720.39 | -23.59 (-0.30%) |
| Dow Jones Industrial Average | 52,342.56 | -132.54 (-0.25%) |
| Nasdaq Composite | 26,184.72 | -365.13 (-1.38%) |
| Rates, dollar and commodities | Level | Day |
|---|---|---|
| 10-year Treasury yield | 4.99% | -0.06 point |
| U.S. Dollar Index | 101.99 | -0.20% |
| WTI crude futures | $102.95 | +0.17% |
| Gold futures | $4,037.10 | -0.36% |
| VIX | 16.45 | -2.72% |
Index closes are final closes as reported by AP. Rates, dollar, commodities and the VIX are late-session prices from our price data. LSEG data showed 81% of the 253 S&P 500 companies that have reported beat estimates, with third-quarter earnings growth expected at 31.0% (Reuters).
U.S. markets at a glance — last 12 monthsComputed from raw prices · U.S. close of 2026-10-29S&P 5001Y +12.0%7,720 · 1W +0.7%Nasdaq1Y +9.9%26,185 · 1W +0.7%Dow1Y +9.7%52,343 · 1W -1.0%PHLX Semis1Y +60.1%11,518 · 1W +7.3%VIX1Y -2.7%16.45 · 1W -13.6%US 10Y1Y +1.01p4.989% · 1W +0.036pDollar Idx1Y +3.3%101.99 · 1W +0.4%Gold1Y +1.4%4,037 · 1W -0.6%WTI Crude1Y +71.2%102.95 · 1W +3.5%Tap for details
| Name | Last | 1D | 1W | 1M | 6M | 1Y |
|---|---|---|---|---|---|---|
| S&P 500 | 7,720 | -0.3% | +0.7% | +0.9% | +7.1% | +12.0% |
| Nasdaq | 26,185 | -1.4% | +0.7% | -2.5% | +5.2% | +9.9% |
| Dow | 52,343 | -0.2% | -1.0% | +2.8% | +5.4% | +9.7% |
| PHLX Semis | 11,518 | -1.4% | +7.3% | -8.8% | +9.7% | +60.1% |
| VIX | 16.45 | -2.7% | -13.6% | +0.7% | -10.1% | -2.7% |
| US 10Y | 4.989% | -0.056p | +0.036p | -0.304p | +0.599p | +1.006p |
| Dollar Idx | 101.99 | -0.2% | +0.4% | +0.5% | +4.0% | +3.3% |
| Gold | 4,037 | -0.4% | -0.6% | -3.6% | -12.8% | +1.4% |
| WTI Crude | 102.95 | +0.2% | +3.5% | +13.9% | -2.0% | +71.2% |
Big Tech and chips
| Stock | Close (10/29) | Day |
|---|---|---|
| Meta (META) | $624.52 | +1.96% |
| Apple (AAPL) | $348.91 | +1.48% |
| Microsoft (MSFT) | $530.14 | -0.16% |
| Tesla (TSLA) | $403.30 | -0.23% |
| Nvidia (NVDA) | $213.66 | -0.80% |
| Broadcom (AVGO) | $345.00 | -1.94% |
| AMD (AMD) | $566.42 | -2.08% |
| Intel (INTC) | $92.07 | -3.62% |
| Amazon (AMZN) | $243.79 | -4.25% |
| Micron (MU) | $934.27 | -4.98% |
| Alphabet (GOOGL) | $283.82 | -12.64% |
Regular-session closes; after-hours moves are not included.
Big Tech 1D performanceComputed from raw prices · U.S. close of 2026-10-29Tap for details
| Name | Close | 1D | 1W | 1M | 6M | 1Y | YTD | vs 1Y high | Volume vs 20D avg |
|---|---|---|---|---|---|---|---|---|---|
| Nvidia (NVDA) | $213.66 | -0.8% | +0.7% | -6.0% | +7.3% | +3.4% | +14.8% | -10.7% | 0.7x |
| Tesla (TSLA) | $403.30 | -0.2% | +7.7% | +14.3% | +5.7% | -12.6% | -10.3% | -17.7% | 0.6x |
| Alphabet (GOOGL) | $283.82 | -12.6% | -12.5% | -16.7% | -26.2% | +3.6% | -9.1% | -29.4% | 5.3x |
| Apple (AAPL) | $348.91 | +1.5% | +0.2% | +5.9% | +28.8% | +29.8% | +28.7% | +0.0% | 1.1x |
| Microsoft (MSFT) | $530.14 | -0.2% | +1.7% | +4.2% | +30.5% | -1.3% | +10.3% | -2.4% | 1.9x |
| Amazon (AMZN) | $243.79 | -4.2% | -2.6% | -1.2% | -8.0% | +5.9% | +5.6% | -14.2% | 2.0x |
| Meta (META) | $624.52 | +2.0% | -3.7% | -15.5% | +2.2% | -16.6% | -5.1% | -19.7% | 1.4x |
| Broadcom (AVGO) | $345.00 | -1.9% | +6.7% | -2.8% | -17.1% | -10.0% | +0.2% | -28.1% | 0.8x |
| Palantir (PLTR) | $196.42 | -0.2% | +0.1% | +5.1% | +41.2% | -1.2% | +10.5% | -6.0% | 0.9x |
| Nasdaq-100 ETF (QQQ) | $715.34 | -1.4% | +1.5% | -3.1% | +7.4% | +13.0% | +16.8% | -5.8% | 1.0x |
Biggest movers
| Company | Close | Day | Reason |
|---|---|---|---|
| Eli Lilly (LLY) | $1,373.00 | +6.57% | Raised full-year revenue outlook on weight-loss drug sales |
| KLA (KLAC) | $167.43 | +5.45% | Profit above expectations; strong December-quarter guide |
| Mastercard (MA) | $635.70 | +4.16% | Q3 revenue +14%, profit beat |
| Caterpillar (CAT) | $647.39 | -9.25% | Beat on profit but kept growth targets unchanged |
| Marvell (MRVL) | $218.34 | -13.24% | Reports of advanced talks to buy Lumentum |
| Fortinet (FTNT) | $139.10 | -20.09% | Q3 results and outlook disappointed |
| Sprouts (SFM) | $48.00 | -22.58% | Q3 missed; Q4 comparable sales guided down 2%-4% |
| ServiceNow (NOW) | $109.67 | -26.95% | Profit missed; Q4 cRPO growth guide slowed to 18.5% |
Reasons as reported by Reuters, AP and the companies. DoorDash rose after agreeing to buy Instacart in a deal valued at about $17 billion (AP). Unusual-volume names are on the U.S. Stock Screener.
Biggest U.S. movers (market cap $5B+)Computed from raw prices · U.S. close of 2026-10-29Tap for details
| Name | 1D | Close | Mkt cap | Volume vs 20D avg |
|---|---|---|---|---|
| GKOS · Glaukos Corporation | +33.6% | $242.48 | $14.3B | 6.1x |
| ADT · ADT Inc. | +33.2% | $9.87 | $7.2B | 21.4x |
| CROX · Crocs, Inc. | +25.5% | $150.26 | $7.2B | 4.5x |
| FTAI · FTAI Aviation Ltd. | +17.3% | $196.01 | $20.1B | 2.2x |
| GEN · Gen Digital Inc. | +15.8% | $28.20 | $16.9B | 1.4x |
| CVNA · Carvana Co. | +15.7% | $68.31 | $75.7B | 2.6x |
| NOW · ServiceNow, Inc. | -26.9% | $109.67 | $113.4B | 5.0x |
| ALNY · Alnylam Pharmaceuticals, Inc | -25.1% | $174.00 | $23.3B | 6.7x |
| FTNT · Fortinet, Inc. | -20.1% | $139.10 | $102.1B | 3.9x |
| HLN · Haleon plc | -14.3% | $8.57 | $37.7B | 3.8x |
| MRVL · Marvell Technology, Inc. | -13.2% | $218.34 | $196.2B | 1.9x |
| GOOGL · Alphabet Inc. | -12.6% | $283.82 | $3,471B | 5.3x |
Economy and central banks
| Release | Actual | Note |
|---|---|---|
| Q3 GDP, advance (annualized) | 3.4% | Q2 2.2%; Reuters poll 3.2% |
| September PCE prices, year over year | 3.6% | Core 3.1%; both in line with LSEG |
| Initial jobless claims (week to Oct 24) | 194,000 | Reuters poll 199,000 |
| ECB deposit rate | 2.50% | Unchanged |
Business investment outside housing grew 12.7% in the quarter, with information-processing equipment up 37.4% (AP). The ECB also said Christine Lagarde will step down on Feb 7, 2027, about nine months before her term ends (Euronews).
In focus
- Marvell and Lumentum: Bloomberg reported that Marvell is in advanced talks to buy the optical-component maker, which would be one of the largest chip deals of the AI cycle. Neither company had confirmed a deal by the close.
- Nvidia (NVDA): the Justice Department is examining Nvidia’s $12.9 billion purchase of Hugging Face, which is expected to close in the first half of 2027 (Reuters, CNBC). Nvidia says the platform will remain neutral across chips and clouds.
- Gilead (GILD): raised its full-year product sales outlook, but widened its GAAP loss-per-share guide to reflect acquired research charges (company release).
Crypto
| Coin | Price (late session) | 24h |
|---|---|---|
| Bitcoin | $80,341 | -1.14% |
| Ether | $2,312.77 | -1.90% |
| Solana | $99.01 | -3.22% |
| XRP | $1.27 | -4.12% |
Bitcoin slipped below $80,000 earlier in the day as tech risk aversion and the Fed’s hawkish hold weighed, with about $356 million of futures positions liquidated in 24 hours (CoinDesk). More on Crypto Market.
Major cryptocurrencies — last 12 monthsComputed from raw prices · as of 2026-10-29Bitcoin1Y -27.0%80,341 · 1W -1.2%Ethereum1Y -40.8%2,313 · 1W -3.1%Solana1Y -49.1%99.01 · 1W -4.4%XRP1Y -50.2%1.27 · 1W -2.9%Tap for details
| Name | Last | 1D | 7D | 30D | 182D | 365D |
|---|---|---|---|---|---|---|
| Bitcoin | 80,341 | -1.1% | -1.2% | -3.9% | +5.3% | -27.0% |
| Ethereum | 2,313 | -1.9% | -3.1% | -13.6% | +2.5% | -40.8% |
| Solana | 99.01 | -3.2% | -4.4% | -16.8% | +19.3% | -49.1% |
| XRP | 1.27 | -4.1% | -2.9% | -14.8% | -7.2% | -50.2% |
Asian chipmakers
Samsung Electronics fell 4.1% in Seoul on Thursday as its shareholder-return plan disappointed, while SK Hynix rose 2.6% (AP). Memory pricing remains the link to Micron, which fell 4.98% today.
Crypto Fear & Greed IndexComputed from raw prices · as of 2026-10-29Tap for details
0 = extreme fear, 100 = extreme greed. It describes mood, not direction.
| Source | Now | Rating | 1 week ago | 1 month ago |
|---|---|---|---|---|
| alternative.me Crypto Fear & Greed Index | 51 | Neutral | 68 | 73 |
Charts are computed directly from raw prices; each shows its own data date. In this edition the charts use today’s (Oct 29) regular-session close, matching the final index closes in the text. On the web, tap a chart for the detailed table.
After-hours moves are early readings reported shortly after the releases and can change through the evening and Friday’s open. Reddit buzz and the unusual-volume screen are on Reddit Buzz and U.S. Stock Screener.
This report is for information only and is not investment advice.
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
- Reuters – Wall Street ends lower as Alphabet revenue miss revives AI capex jitters (Virginia Business)
- AP – A potentially historic drop for Alphabet's stock drags the US market lower (ABC News)
- Amazon – Third quarter 2026 results
- Reuters – Amazon projects fourth-quarter sales below estimates (Global Banking & Finance Review)
- Intel – Third-quarter 2026 financial results
- Reuters – Intel signals slower growth as PC market remains under pressure (Global Banking & Finance Review)
- Gilead – Q3 2026 results (SEC 8-K exhibit)
- BEA – GDP advance estimate, third quarter 2026
- Fox Business – September PCE inflation and FedWatch odds
- AP – U.S. economy grows at brisk 3.4% pace in third quarter (PBS NewsHour)
- Reuters – U.S. weekly jobless claims hover near 57-year lows
- ECB – Monetary policy decisions, Oct 29, 2026
- Euronews – ECB holds rates at 2.5% as Lagarde announces early exit
- Bloomberg – Marvell is said to near deal for Lumentum
- CNBC – DOJ questions Nvidia's $12.9 billion Hugging Face deal
- CoinDesk – Bitcoin dips below $80,000 as tech risk aversion and a hawkish Fed weigh
- AMD – Q3 2026 results date
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