US stocks slip as Google drags down Nasdaq
Wall Street stocks retreated on Thursday, led by the tech-focused Nasdaq after disappointing results from Google parent Alphabet exacerbated concerns over whether the global technology boom can be sustained. Shares of Alphabet finished down more than 12 percent, resulting in around a US$480 billion hit to the tech giant's market value in a bruising session. European bourses had advanced earlier…
US stocks fell on Thursday, primarily due to poor performance by Google's parent company Alphabet, which dragged down the tech-focused Nasdaq. Alphabet's shares dropped over 12 percent, causing a significant US$480 billion loss in the company's market value. European stock markets had risen earlier, but the euro depreciated after Christine Lagarde announced her resignation as ECB president.
The Nasdaq lost 1.4 percent, while the S&P 500 and Dow also experienced minor declines. Alphabet's disappointing growth in advertising revenue and search business, along with plans to increase capex spending significantly in 2027, raised concerns about AI investment returns among investors. Analysts said that while the company's investment plan is for long-term growth, markets were worried about the lack of clear evidence that the investments would lead to higher profits.
Despite some companies, such as Eli Lilly and MasterCard, showing gains, the broad-based weakness in equities was evident. US economic growth in the third quarter was stronger than expected at 3.4 percent, driven by robust consumer spending. The Federal Reserve maintained interest rates steady, while the ECB kept its benchmark rate unchanged.
Lagarde's resignation has sparked speculation about her potential future involvement in politics, while Eurozone inflation rose to a three-year high of 3.8 percent due to energy costs.
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