Wall Street Slides as Alphabet Stumbles
Wall Street tumbled on Thursday after Alphabet, Google’s parent company, fell more than 4%, pulling major indexes down and rattling markets from bitcoin to precious metals. The S&P 500 dropped 1.2%, marking its sixth loss in seven sessions since hitting a record high. The Dow Jones fell 606 points, while the Nasdaq slid 1.5%.
Alphabet was the main drag despite reporting profits above expectations. Investors focused on the company’s plan to nearly double spending on equipment and other investments to $180 billion (€152bn) this year, far surpassing analysts’ $119 billion (€100.5bn) forecast, sparking concerns over broader tech-sector expenditures.
Job Market Worries Add Pressure
Weak US labor data intensified the sell-off. Weekly unemployment claims rose more than expected, signaling potential acceleration in layoffs. Meanwhile, employers announced over 108,000 planned job cuts in January, the highest January figure since 2009. Job postings also fell to the lowest level in over five years.
The softening labor market has investors speculating that the Federal Reserve may cut interest rates to support the economy, even amid inflation concerns. Treasury yields responded, with the 10-year yield dropping to 4.21% from 4.29%.
Commodities and Crypto Feel the Impact
The turmoil extended to commodities and digital assets. Silver plunged 13.3% in a volatile swing, and gold fell 2.3% to $4,838.80 (€4,087.50) per ounce after a year of dramatic price movements. Bitcoin also dropped below $68,000 (€57,432), down sharply from its October peak above $124,000 (€104,730), dragging crypto-linked stocks lower. Coinbase fell 8.3%, and Strategy tumbled 11.9%.
Some companies bucked the trend. Broadcom gained 3.7%, benefiting from anticipated AI spending, while McKesson surged 16.8% after beating profit and revenue expectations. International markets 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 plunging 3.9%, including a 6% drop in Samsung Electronics.
