Potentially historic drop for Alphabet's stock drags US market lower

New York – A potentially historic dip in Alphabet’s stock pushed the U.S. market down on Thursday, following the tech giant's disclosure of lower growth compared to analysts’ expectations for the summer. The revelation highlighted concerns over whether Alphabet’s massive investments in artificial intelligence would yield fruitful results.

The S&P 500 dipped 0.6 percent, marking its first decline in four days, despite the majority of stocks within the index and the broader Wall Street scene showing an upward trend. The Nasdaq composite declined by 1.6 percent, while the Dow Jones Industrial Average slipped 269 points, or 0.5 percent. Alphabet, one of the most influential stocks on Wall Street due to its large size, suffered a 12.8 percent loss, bringing it close to its worst day since it began trading over two decades ago.

The company had faced pressure to at least meet analysts’ expectations for growth, given the considerable spending it has committed to AI development. In late Wednesday, Alphabet reported that it had depleted more cash during the latest quarter, as indicated by the free cash flow metric.