U.S. stocks fell sharply on Thursday after shares of Alphabet dropped more than 4%, dragging major indexes lower and sparking a sell-off across assets ranging from cryptocurrencies to precious metals.
The S&P 500 declined 1.2%, marking its sixth loss in seven sessions since hitting a record high. The Dow Jones Industrial Average fell 606 points, or 1.2%, while the Nasdaq Composite dropped 1.5%.
Alphabet weighed heavily on the market despite reporting quarterly profits above expectations. Investors reacted negatively after the company said capital spending could nearly double this year to about $180 billion, far exceeding forecasts.
Jobs data pushes bond yields lower
U.S. Treasury yields fell after fresh labour data showed a larger-than-expected rise in unemployment benefit claims, raising concerns that layoffs may be accelerating. Separate figures also showed a sharp increase in planned job cuts, with employers announcing more than 108,000 layoffs last month, the worst January reading since 2009.
The yield on the 10-year Treasury slipped to 4.21% from 4.29% a day earlier, as investors increased bets on potential interest rate cuts by the Federal Reserve.
Commodities and crypto retreat sharply
Commodity markets were volatile. Silver plunged more than 13%, while gold fell over 2% to around $4,839 per ounce after weeks of sharp gains driven by demand for safe-haven assets.
Bitcoin also slid heavily, dropping below $68,000 from its October peak above $124,000. The decline dragged down crypto-linked stocks, with Coinbase falling more than 8% and Strategy losing nearly 12%.
Mixed corporate earnings
Outside the technology sector, Qualcomm dropped over 7% despite beating earnings expectations, citing weaker demand from handset makers. Estée Lauder sank more than 21% after warning that tariffs could erase about $100 million in profits.
On the positive side, Broadcom rose nearly 4% on optimism around continued AI-related spending. McKesson surged almost 17% after posting strong quarterly results and raising its full-year outlook.
Global markets follow lower
Stock markets across Europe and Asia also declined. London’s FTSE 100 fell after the Bank of England kept rates unchanged, while France’s CAC 40 and Germany’s DAX slipped following a similar decision by the European Central Bank. In Asia, South Korea’s Kospi dropped nearly 4%, retreating from record levels.
