Wall Street ends lower as revenue misses revive AI jitters
All three major US equity indexes lost ground, with the tech-laden Nasdaq losing the most in the wake of Alphabet's disappointing quarterly results.
US stocks fell on Thursday as large technology companies faced scrutiny over their AI investments following disappointing earnings. The tech-heavy Nasdaq suffered the greatest losses, while small-cap stocks led the market higher. Alphabet, the parent company of Google, was a significant drag on the communication services sector after reporting revenue below expectations and increased AI-related cash burn.
Investors digested earnings and inflation data released after the Federal Reserve maintained interest rates steady. While some tech stocks struggled, others, like Caterpillar and Eli Lilly, topped estimates. The Dow Jones Industrial Average slipped 0.25%, the S&P 500 dropped 0.30%, and the Nasdaq Composite declined 1.37%. Analysts noted that a mixed interpretation of AI challenges doesn't necessarily signal broader market weakness.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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