The US stock market closed lower on Thursday as a wave of disappointing tech earnings revived worries about the massive sums companies are spending on artificial intelligence.
How the Markets Closed
- Dow Jones: down 132.54 points (-0.25%) to 52,342.56
- S&P 500: down about 0.3%
- Nasdaq Composite: down about 1.4%
Alphabet’s Worst Day on Record
Google’s parent company Alphabet was the biggest drag, plunging more than 12% after its third-quarter sales fell short of Wall Street’s expectations, according to Yahoo Finance. Investors were also worried about its cash flow and whether its huge AI spending will pay off, even though Google Cloud revenue grew 103%.
The fall was on track to be Alphabet’s worst single day ever, wiping out close to $500 billion in market value.
Tech and Software Stocks Hit Hard
It was a rough day for the wider tech sector:
- Intel sank about 17% after forecasting fourth-quarter revenue of $15–16 billion, below the $17 billion analysts expected, citing weaker PC sales.
- ServiceNow crashed about 25% and Fortinet about 21% after their results.
- Amazon fell around 10% in after-hours trading following its results, before trimming some losses.
- Caterpillar dropped as much as 12% on a cautious sales outlook, weighing on the Dow.
The Winners
Not every stock fell. Home security firm ADT jumped about 34% after agreeing to a $7.6 billion buyout by Thrive Holdings. Crocs rose 25%, Carvana about 15% on record revenue, and Eli Lilly about 6% on strong sales of its weight-loss drugs.
Inflation and Oil Still a Worry
The sell-off came a day after the Federal Reserve held interest rates steady. New data showed the economy grew at a strong 3.4% annual rate in the third quarter, but inflation remains high: the PCE price index rose 3.6% from a year earlier.
Oil prices eased but stayed elevated, with US crude near $102 a barrel and Brent near $115, as traders watched for progress in diplomacy with Iran. The 10-year Treasury yield hovered near 5%.
Why It Matters for Nigeria
High oil prices boost Nigeria’s export earnings, but high US interest rates and bond yields tend to strengthen the dollar and draw investment away from emerging markets, putting pressure on the naira. Nigerian investors with US tech stocks will also feel the impact of Thursday’s slide.
Sources: Yahoo Finance, 24/7 Wall St. Image: Wikimedia Commons (file photo).