Alphabet’s Spending Plans Rattle Wall Street
US markets slid sharply on Thursday after Alphabet shares sank more than 4%, dragging major indexes lower and setting off a broader sell-off across asset classes. The S&P 500 fell 1.2%, marking its sixth decline in seven sessions since hitting a record high, while the Dow Jones Industrial Average dropped 606 points. The Nasdaq composite fared worst, sliding 1.5%.
Alphabet weighed heavily on the market despite posting quarterly profits that exceeded expectations. Investors instead focused on the company’s warning that spending on equipment and infrastructure could surge to around $180 billion this year — far above forecasts. The prospect of ballooning costs unsettled markets already on edge about stretched valuations.
Job Market Jitters Push Yields Down
Bond markets also reflected growing unease. Treasury yields fell after new data showed a larger-than-expected rise in applications for US unemployment benefits, raising concerns that layoffs may be accelerating. The yield on the 10-year Treasury slipped to 4.21% from 4.29% a day earlier.
Separate figures painted a darker picture. US employers announced more than 108,000 job cuts last month, the worst January total since 2009, while job openings fell to their lowest level in over five years. Together, the reports fuelled speculation that the Federal Reserve could be forced to cut interest rates to support the economy, even as inflation risks remain.
Commodities and Crypto Whipsawed
The market turbulence spilled into commodities and digital assets. Silver plunged more than 13% in its latest sharp swing, while gold dropped 2.3% after weeks of wild price movements that had seen it nearly double over the past year. Bitcoin also fell heavily, slipping below $68,000 after peaking above $124,000 in October, dragging down crypto-linked stocks such as Coinbase and Strategy.
Not all shares were swept lower. Broadcom gained 3.7% as investors bet on continued spending tied to the artificial intelligence boom, while healthcare group McKesson surged nearly 17% after delivering strong earnings and raising its outlook. Overseas, markets were broadly weaker, with stocks across Europe and Asia falling, including a near-4% drop in South Korea’s Kospi as Samsung Electronics reversed recent gains.
