Tech Shock Ripples Across Wall Street
US markets fell sharply on Thursday after Alphabet shares dropped more than 4%, pulling major indexes lower and unsettling investors across asset classes. The S&P 500 slid 1.2%, marking its sixth decline in seven sessions since hitting 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 stronger-than-expected quarterly profits. Investors reacted instead to the company’s warning that capital spending could nearly double this year to about $180 billion, far exceeding forecasts. The move rattled confidence in a market already showing signs of fatigue after a long rally.
Jobs Data Fuels Rate-Cut Bets
Bond yields also moved lower following fresh signs of weakness in the US labour market. Applications for unemployment benefits rose more than expected last week, while a separate report showed US employers announced more than 108,000 layoffs last month — the worst January figure since 2009.
Another government report added to concerns, revealing job openings fell in December to their lowest level in more than five years. Together, the data strengthened expectations that the Federal Reserve may eventually cut interest rates to support growth, even as inflation risks linger. The 10-year Treasury yield slipped to 4.21%.
Turmoil Hits Crypto and Commodities
Volatility spilled into commodities and digital assets. Silver plunged more than 13% in another sharp swing, while gold fell 2.3% to around $4,839 an ounce after weeks of extreme price movements. Both metals had surged as investors sought safety amid political uncertainty and debt concerns, but analysts warned the rally had become unsustainable.
Bitcoin also fell heavily, dropping below $68,000 after peaking above $124,000 in October. Crypto-related stocks followed it lower, with Coinbase sliding more than 8% and bitcoin-focused firm Strategy down nearly 12%.
Elsewhere, Qualcomm and Estee Lauder posted solid earnings but still saw steep share price declines on weaker outlooks and cost pressures. Gains were limited to a handful of AI-linked stocks such as Broadcom, while overseas markets in Europe and Asia also ended the day lower, led by sharp losses in South Korea’s Kospi index.
