Nasdaq Ends 3-Day Win Streak as Alphabet’s 12.6% Drop Revives AI Spending Fears
Updated
Updated · Investor's Business Daily · Oct 29
Nasdaq Ends 3-Day Win Streak as Alphabet’s 12.6% Drop Revives AI Spending Fears
3 articles · Updated · Investor's Business Daily · Oct 29
Summary
U.S. stocks fell Thursday, snapping a three-session rally, after Alphabet’s post-earnings selloff reignited pressure on AI-linked shares and dragged the Nasdaq lower.
Alphabet sank 12.6% after investors focused on disappointing revenue and heavier AI-related cash burn, reviving concerns that hyperscalers’ spending may outrun near-term returns.
The Dow slipped about 0.3%, while traders awaited Amazon earnings later in the day for a fresh read on whether Big Tech can justify escalating AI investment.
Those worries have widened beyond Alphabet as Amazon, Microsoft, Google and Meta are on track to spend more than $720 billion this year on data centers, roughly triple two years ago.