Alphabet Shockwaves Hit Wall Street
US markets retreated sharply on Thursday after Alphabet shares dropped more than 4%, dragging major indexes lower and unsettling investors. The S&P 500 fell 1.2%, moving toward its sixth loss in seven sessions since hitting a record high. The Dow Jones Industrial Average shed 606 points, while the Nasdaq slid 1.5%.
Despite Alphabet posting better-than-expected quarterly profits, investors focused on the company’s warning that spending on equipment and long-term investments could soar to around $180 billion this year — far exceeding forecasts and raising concerns about mounting costs across the tech sector.
Job Market Signals Add to Unease
Fresh signs of weakness in the US labour market added to the pressure. Treasury yields fell after data showed a larger-than-expected rise in applications for unemployment benefits, suggesting layoffs may be picking up pace.
Separate figures showed US employers announced more than 108,000 job cuts last month, the worst January total since 2009. Another government report revealed job openings fell to their lowest level in over five years. Together, the data strengthened expectations that the Federal Reserve may need to cut interest rates to support the economy, despite inflation risks.
Volatility Spreads to Gold, Crypto and Global Stocks
Market turbulence rippled beyond equities. Silver plunged more than 13% in its latest sharp swing, while gold dropped 2.3% after weeks of extreme volatility. Bitcoin also slid heavily, falling below $68,000 from its October peak, dragging down crypto-related stocks such as Coinbase and Strategy.
Not all shares ended lower. Broadcom gained 3.7% on optimism around ongoing AI investment, while healthcare group McKesson jumped nearly 17% after strong earnings. Overseas, markets also fell, with losses across Europe and Asia. South Korea’s Kospi tumbled almost 4%, while Samsung Electronics dropped 6% just days after a sharp rally.
