Alphabet Drop Sends Wall Street Lower
US markets fell sharply on Thursday after Alphabet shares slid more than 4%, dragging major indexes down and unsettling investors across asset classes. The S&P 500 dropped 1.2%, putting it on course for its sixth decline in seven sessions since reaching a record high. The Dow Jones Industrial Average was down 606 points, while the Nasdaq fell 1.5%.
Alphabet weighed heavily on the market despite beating profit expectations for the latest quarter. Investors instead focused on the company’s warning that spending on equipment and infrastructure could surge to around $180 billion this year — far above forecasts — raising concerns about rising costs across the tech sector.
Jobs Data Raises Recession and Rate Cut Questions
Pressure on markets intensified after fresh US labour data showed a bigger-than-expected rise in unemployment benefit claims, fuelling fears that layoffs may be picking up. Treasury yields fell as investors bet the Federal Reserve may be forced to cut interest rates to support the economy.
Separate figures added to the unease. 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. The yield on the 10-year Treasury dropped to 4.21%, down from 4.29% a day earlier.
Commodities and Crypto Swing as Volatility Spreads
The market turmoil rippled into commodities and digital assets. Silver plunged more than 13% in another dramatic move, while gold slid 2.3% after weeks of extreme volatility. Both metals had surged recently as investors sought safe havens, but sharp pullbacks followed as prices proved unsustainable.
Bitcoin also fell heavily, dropping below $68,000 from its October peak above $124,000. The decline hit crypto-linked stocks hard, with Coinbase sinking 8.3% and Strategy tumbling nearly 12%.
Not all stocks ended lower. Broadcom gained 3.7% on optimism around continued AI investment, while McKesson surged almost 17% after strong earnings. Overseas, markets were weaker across Europe and Asia, with South Korea’s Kospi dropping nearly 4% as Samsung Electronics gave back recent gains.
