Alphabet Drop Sends Stocks Lower
Wall Street tumbled Thursday after Alphabet, Google’s parent company, fell more than 4%, pulling major indexes down. The S&P 500 dropped 1.2%, the Dow lost 606 points, and the Nasdaq fell 1.5%, marking the sixth decline in seven sessions since the S&P hit a record high.
Alphabet’s decline came despite reporting stronger-than-expected profits. Investors were rattled by the company’s plan to double spending on equipment and investments to $180 billion (€152bn) this year, far above analysts’ projections of $119 billion (€100.5bn).
Weak Job Market Pressures Bonds
Concerns over the US labor market added to the market turmoil. Weekly unemployment claims rose more than expected, and January layoffs hit 108,435 — the highest for the month since 2009. Job openings also fell to a five-year low in December, signaling slower hiring.
Treasury yields dropped, with the 10-year yield falling to 4.21%, reflecting investor caution. Economists warn that ongoing weakness in the job market could push the Federal Reserve to cut interest rates to support the economy, even amid inflation concerns.
Commodities, Crypto, and Global Stocks Swing
The turbulence extended to commodities and cryptocurrencies. Silver plunged 13.3%, and gold fell 2.3% to $4,838.80 (€4,087.50) per ounce after months of wild swings. Bitcoin also sank below $68,000 (€57,432), dragging down crypto-linked stocks like Coinbase and Strategy.
Some companies bucked the trend. Chipmaker Broadcom rose 3.7%, while healthcare firm McKesson jumped 16.8% after exceeding earnings forecasts. Overseas, markets also struggled: London’s FTSE 100 fell 0.9%, Germany’s DAX lost 0.9%, and South Korea’s Kospi plunged 3.9%, with Samsung Electronics dropping 6% after a recent surge.
