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Alphabet drop of more than 12% pulls U.S. indexes lower Thursday
The Associated Press said Alphabet shares were down 12.2% Thursday morning after a quarterly growth miss, weighing on the Nasdaq as of 10 a.m. Eastern time.
- The Philadelphia Inquirer is now reporting this
- New headline Was: “A potentially historic drop for Alphabet's stock drags the US market lower”
- Our desk filed its story
Based on reporting by The Philadelphia Inquirer
Wire reporting: (AP, via The Philadelphia Inquirer)
U.S. stock indexes were lower Thursday morning as Alphabet Inc. fell after reporting slower summer growth than analysts expected, according to The Associated Press, via The Philadelphia Inquirer1.
As of 10 a.m. Eastern time, AP said the S&P 500 was down 0.4%, the Nasdaq composite was down 1.4%, and the Dow Jones Industrial Average was down 0.3%, or 160 points, with most other stocks rising1. Alphabet was down 12.2%, a move AP said was on track to be its steepest since the stock began trading more than 20 years ago1.
Alphabet said late Wednesday that free cash flow fell after property and equipment purchases topped $51 billion, AP reported1. The wire tied the selling to questions about returns on artificial-intelligence spending across the industry and to higher borrowing costs1.
AP said a preliminary reading suggested overall U.S. growth may have accelerated in the summer on consumer spending and business AI investment, while other reports showed weaker September income growth and a worse inflation reading1. Brent crude was down 2.1% to $109.26 a barrel, European indexes rose, Asia was mixed, and South Korea's Kospi fell 1.2% with Samsung Electronics down 4.1% despite a reported profit jump1.
