Alphabet’s Drop Pulls Wall Street Lower
Wall Street tumbled on Thursday after Alphabet, Google’s parent company, fell more than 4%, sending major indexes into negative territory. The S&P 500 slid 1.2%, marking its sixth loss in seven trading days, while the Dow Jones dropped 606 points and the Nasdaq fell 1.5%. Investors were rattled despite Alphabet and other companies reporting profits that beat expectations, as the tech giant revealed plans to nearly double spending on equipment and investments to $180 billion (€152bn) this year, far exceeding analyst forecasts.
Job Market Worries Deepen Investor Caution
US labor reports added to the market jitters. Applications for unemployment benefits rose more than expected, while job cuts surged to over 108,000 in January — the highest monthly total since 2009. At the same time, advertised job openings fell to a five-year low. These trends fueled speculation that the Federal Reserve may cut interest rates to support the economy, even amid inflation concerns. Treasury yields dropped in response, with the 10-year yield falling to 4.21%.
Commodities and Crypto See Sharp Swings
The fallout extended beyond stocks. Silver plummeted 13.3% and gold dropped 2.3% to $4,838.80 (€4,087.50) per ounce after months of volatile gains. Bitcoin also fell below $68,000 (€57,432), pulling down crypto-linked companies such as Coinbase and Strategy. Some sectors showed resilience: Broadcom gained 3.7% on AI-driven optimism, and McKesson jumped nearly 17% following strong quarterly results. Globally, markets mirrored the turbulence, with Europe’s FTSE 100, CAC 40, and Germany’s DAX all sliding, while South Korea’s Kospi fell 3.9% from its recent record high, and Samsung Electronics dropped 6% just days after a strong rally.
