Wall Street closed lower as disappointing quarterly revenue from Alphabet reignited market anxiety surrounding high artificial intelligence capital expenditure. The tech giant's heavy cash burn caused its shares to plunge 10 per cent in after-hours trading, erasing nearly US$400 billion from its market value and pulling Nasdaq futures down by 1 per cent.
The market reaction highlighted sharp divergence across the technology sector. While Alphabet struggled with revenue expectations, Microsoft countered the trend by posting stronger-than-expected cash flows that lifted its shares by 3 per cent. The mixed earnings reports heightened investor focus ahead of upcoming corporate results from Amazon and Intel.
The tech-driven pullback followed a Federal Reserve rate announcement earlier in the week, keeping broader financial markets on edge as traders weigh corporate spending against shifting monetary policy.
