Tech Slide Sparks Broad Market Losses
Wall Street retreated sharply on Thursday after shares in Alphabet fell more than 4%, dragging major US indexes lower and unsettling markets well beyond equities. The S&P 500 dropped 1.2%, marking its sixth decline in seven sessions since hitting a record high, while the Dow Jones Industrial Average fell 606 points. The Nasdaq slid 1.5%, weighed down heavily by big tech.
Alphabet’s decline came despite stronger-than-expected quarterly profits. Investors instead focused on the company’s warning that capital spending could surge to around $180 billion this year, far exceeding analysts’ forecasts. The news revived concerns about costs across the tech sector and rattled confidence more broadly.
Jobs Data Fuels Rate-Cut Expectations
Pressure on markets intensified after new signs of weakness in the US labour market. Weekly jobless claims rose more than expected, pushing Treasury yields lower as investors bet the Federal Reserve may need to cut interest rates sooner to support the economy. The yield on the 10-year Treasury fell to 4.21%.
More troubling signals followed. US employers announced over 108,000 planned layoffs last month, the highest January figure since 2009, according to Challenger, Gray & Christmas. Separately, government data showed job openings fell in December to their lowest level in more than five years. While some economists cautioned against overreacting, the data added to fears that layoffs may be accelerating.
Wild Swings Hit Gold, Silver and Bitcoin
Commodities and crypto markets saw especially sharp moves. Silver plunged more than 13% in its latest dramatic swing, while gold fell 2.3% to around $4,839 an ounce after weeks of extreme volatility. Both metals had surged as investors sought safe havens amid political uncertainty and concerns about overstretched stock valuations, but analysts had warned a pullback was likely.
Bitcoin also dropped heavily, slipping below $68,000 after peaking above $124,000 in October. The slide hit crypto-linked stocks hard, with Coinbase falling more than 8% and Strategy sinking nearly 12%.
Not all corners of the market were negative. Chipmaker Broadcom rose 3.7%, supported by expectations that heavy AI-related spending will continue. McKesson jumped almost 17% after posting strong earnings and raising its full-year outlook.
Markets overseas also fell, with losses across Europe and Asia. South Korea’s Kospi dropped nearly 4%, while major European indexes slipped after central banks held interest rates steady.
