Tech Sell-Off Hits Major Indexes
Wall Street fell sharply on Thursday after Alphabet, Google’s parent company, dropped more than 4%, pulling the S&P 500 down 1.2%, the Dow Jones 1.2%, and the Nasdaq 1.5%. Despite posting stronger quarterly profits than analysts expected, Alphabet’s announcement that its spending on equipment and other investments could double to $180 billion (€152bn) this year unsettled investors, far surpassing forecasts of $119 billion (€100.5bn).
Job Market Weakness Adds Pressure
Investor concerns were compounded by sobering labor market reports. Weekly US unemployment claims rose more than expected, while employers announced 108,435 planned layoffs in January — the worst start-of-year total since 2009. Job openings also fell to a five-year low in December. Treasury yields reacted, with the 10-year yield dropping to 4.21%, as investors weighed the possibility that the Federal Reserve may cut interest rates to support the economy.
Volatile Commodities, Crypto, and Global Stocks
Commodities and cryptocurrencies also tumbled. Silver fell 13.3% in a volatile swing, while gold dropped 2.3% to $4,838.80 (€4,087.50) per ounce. Bitcoin slid below $68,000 (€57,432), dragging down crypto-linked stocks such as Coinbase and Strategy. Outside crypto, Qualcomm fell 7.2% and Estee Lauder dropped 21.2% despite exceeding earnings expectations.
Some winners emerged, including Broadcom, which gained 3.7%, and McKesson, which jumped 16.8% after strong earnings. International markets mirrored the US trend: London’s FTSE 100 fell 0.9%, Germany’s DAX dropped 0.9%, and South Korea’s Kospi tumbled 3.9%, with Samsung Electronics down 6% after a recent surge.
