Stock Market Today: Dow, S&P 500, Nasdaq Fall as Alphabet Stock Sell-Off Drags On
The US stock market opened with a decline on Thursday as Alphabet's third-quarter earnings led to a sell-off in the tech sector and renewed concerns about artificial intelligence (AI) investments. The Dow Jones Industrial Average fell 0.4%, while the S&P 500 lost 0.5%. The tech-heavy Nasdaq Composite dropped 1.6%.
Alphabet's earnings report, which missed analyst expectations, weighed heavily on the company's stock and contributed to the sell-off in the tech sector. Despite a 103% growth in cloud sales, investors were concerned about the company's free cash flow and return on investment in AI. This sentiment spread to other AI-related stocks, causing a decline in Asian markets, including the South Korean Kospi index.
Microsoft's earnings report, on the other hand, beat analyst expectations, with strong performance on both the top and bottom lines. However, the positive news from Microsoft was not enough to offset the negative impact of Alphabet's earnings on the overall market.
