Tech Slide Sends Wall Street Retreating
US stocks fell sharply on Thursday after Alphabet shares dropped more than 4%, dragging major indexes lower and unsettling markets well beyond equities. 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 composite dropped 1.5%.
Alphabet weighed heavily on the market despite reporting stronger-than-expected quarterly profits. Investors reacted negatively after the company said capital spending could surge to around $180 billion this year, far above analyst forecasts. The move sparked broader concerns about costs across the tech sector, adding to market unease.
Jobs Data Raises Economic Fears
Pressure also built in bond markets after fresh US jobs data showed a larger-than-expected jump in applications for unemployment benefits, hinting at a possible acceleration in layoffs. Treasury yields fell as investors bet the Federal Reserve could be forced to cut interest rates if labour market weakness deepens.
Further signs of strain emerged from a report showing US employers announced more than 108,000 job cuts last month, the worst January figure since 2009. Another government release showed job openings fell in December to their lowest level in over five years. Together, the reports reinforced fears that the economy may be losing momentum.
Commodities and Crypto Whipsawed
The market turbulence spilled into commodities and digital assets. Silver plunged more than 13% in its latest sharp swing, while gold fell 2.3% after weeks of extreme volatility. Both metals had surged previously as investors sought safe havens amid political and economic uncertainty, but analysts said a pullback was increasingly inevitable.
Bitcoin also dropped sharply, sliding below $68,000 from its October peak above $124,000. The fall dragged down crypto-linked stocks, with Coinbase down more than 8% and Strategy tumbling nearly 12%.
Elsewhere, chipmaker Qualcomm fell despite beating earnings expectations, while Estee Lauder sank over 21% after warning that tariffs could significantly dent profits. Some bright spots remained, including Broadcom, which gained on optimism around continued AI investment, and healthcare group McKesson, which surged after strong results.
Global markets followed Wall Street lower, with major indexes across Europe and Asia declining, including sharp losses in South Korea, where stocks retreated from recent record highs.
