Alphabet Drop Sparks Broad Market Decline
Wall Street fell sharply on Thursday after Alphabet, Google’s parent company, lost more than 4%, pulling major indexes lower. The S&P 500 dropped 1.2%, the Dow Jones fell 606 points, and the Nasdaq slid 1.5%. Despite beating profit expectations for the latest quarter, Alphabet’s announcement that its spending on equipment and investments could reach $180 billion this year alarmed investors, overshadowing strong earnings.
US Job Market Adds Pressure
Bond markets also reacted as reports showed a rise in unemployment claims and planned layoffs, signaling potential weakness in the labor market. Treasury yields fell, with the 10-year yield dropping to 4.21%. Employers announced 108,435 layoffs in January, the highest since 2009, while job postings hit a five-year low, stoking fears that the Federal Reserve may need to cut interest rates to support economic growth.
Volatility Hits Commodities, Crypto, and Global Stocks
The turbulence extended to commodities and cryptocurrencies. Silver plunged 13.3% and gold fell 2.3% after recent extreme gains. Bitcoin dropped below $68,000 from a record above $124,000 in October, dragging down related stocks like Coinbase and Strategy. Meanwhile, some companies bucked the trend: Broadcom rose 3.7% on AI spending optimism, and McKesson jumped 16.8% after beating profit forecasts. Markets abroad also weakened, with London’s FTSE 100 down 0.9%, France’s CAC 40 down 0.7%, Germany’s DAX down 0.9%, and South Korea’s Kospi tumbling 3.9% from its all-time high.
