US Markets Today: Alphabet drags Wall Street down; Bitcoin, gold and silver fall
US stock markets fell on Thursday, as benchmark indices fell on weakness in technology stocks led by Alphabet, while bitcoin and precious metals also posted sharp declines, according to the AP.
The S&P 500 experienced a 0.8% decline, marking its sixth consecutive loss since reaching its all-time high. As of 9:35 a.m.
Eastern Time, the Dow Jones Industrial Average fell 326 points, or 0.7%, while the Nasdaq Composite dropped 0.8%.
Alphabet fell 5.4%, even though Google’s parent company reported stronger-than-expected profit in the latest quarter.
Investors instead focused on its aggressive artificial intelligence spending plans.
Alphabet said its spending on equipment and other investments could double this year to about $180 billion, more than analysts’ expectations of less than $119 billion, according to FactSet. In the bond market,
Treasury yields fell after labour market data pointed to rising tensions.
US unemployment benefit applications increased more than economists expected last week, a report showed.
signalling a possible acceleration in layoffs. Another report showed that layoffs announced by US-based employers rose to 108,435 last month, the highest monthly level since October and the worst level in January since 2009, according to Challenger, Grey and Christmas.
The weak labour outlook has raised expectations that the Federal Reserve could cut interest rates to support the economy, even if that risks worsening inflation.
The yield on the 10-year Treasury fell to 4.23% from 4.29% late Wednesday.
Commodity markets witnessed sharp fluctuations. Silver fell 12.1% amid continued volatility after last week’s record-breaking rally halted.
Gold fell 1.9% to $4,855 an ounce after swinging sharply in recent sessions.
The metal was near $5,600 last week and fell below $4,500 earlier this week
Both gold and silver had earlier risen due to demand for safe-haven assets by investors amid concerns over political instability, expensive equity valuations and high global debt levels.
However, analysts warned that such extreme rallies could lead to a correction.
Bitcoin, often called “digital gold”, also fell and briefly slipped below $70,000, despite its record high above $124,000 in October.
Among individual stocks, Qualcomm declined 9.1% despite reporting better-than-expected profit and revenue.
The company issued a weak profit forecast as an industry-wide memory shortage hurt handset demand.
Outside the technology sector, Estée Lauder fell 16.9% despite earnings beating estimates after warning that tariff-related pressure could reduce profits for its fiscal year by about $100 million.
Stock markets also remained weak globally. London’s FTSE 100 fell 0.9% after the Bank of England kept interest rates unchanged.
France’s CAC 40 fell 0.6%, while Germany’s DAX dropped 1.1% after the European Central Bank kept rates steady
In Asia, South Korea’s Kospi fell 3.9%, falling from its record high. Samsung Electronics fell 6%, two days after rising 11.4%.
