Alphabet Slide Triggers Broad Sell-Off
US markets fell sharply on Thursday after Alphabet shares dropped more than 4%, dragging major indexes lower and unsettling investors across asset classes. The S&P 500 slipped 1.2%, marking its sixth decline in seven sessions since reaching a record high. The Dow Jones Industrial Average fell 606 points, while the Nasdaq dropped 1.5%.
Alphabet weighed heavily on the market despite posting quarterly profits above expectations. Investors instead focused on the company’s warning that spending on equipment and infrastructure could surge to around $180 billion this year, far exceeding analyst forecasts. The news revived concerns about rising costs across the tech sector and sparked a broader retreat from risk.
Weak Jobs Data Fuels Rate Cut Talk
Pressure also came from the bond market, where Treasury yields fell following signs of a softening US labour market. New data showed unemployment benefit claims rose more than expected last week, raising fears that layoffs may be picking up pace.
Separate figures painted an even darker picture. Employers announced more than 108,000 job cuts last month, the worst January total since 2009, while government data showed job openings fell to their lowest level in over five years. Together, the reports strengthened expectations that the Federal Reserve may need to cut interest rates to support the economy, despite ongoing inflation risks. The yield on the 10-year Treasury dropped to 4.21%.
Commodities and Crypto Reel from Volatility
The market turmoil rippled through commodities and cryptocurrencies. Silver plunged more than 13% in its latest dramatic swing, while gold fell 2.3% as investors pulled back after months of rapid gains. Both metals had surged as safe havens amid political and economic uncertainty, but analysts warned such steep rises were unlikely to last.
Bitcoin also slid sharply, dropping below $68,000 after peaking above $124,000 in October. The decline hit crypto-related stocks hard, with Coinbase falling more than 8% and Strategy tumbling nearly 12%.
Not all sectors suffered. Chipmaker Broadcom rose 3.7% on optimism around continued AI spending, while healthcare group McKesson surged nearly 17% after strong earnings. Overseas markets were less resilient, with stocks falling across Europe and Asia, including a near-4% drop in South Korea as Samsung Electronics reversed recent gains.
