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NewsWPLG Local 10 – Main FeedOctober 29, 2026Miami-Dade County

Alphabet stock drop drags U.S. markets lower amid artificial intelligence spending concerns

Photo: WPLG Local 10 – Main Feed

Alphabet shares tumbled 12.9% following weaker-than-expected summer growth and high artificial intelligence expenditures, pulling the S&P 500 down 0.5% and the Nasdaq composite down 1.5% on Thursday. Meanwhile, other major companies like DoorDash, KLA Corp, Eli Lilly, Mastercard, and Merck saw stock gains after reporting stronger-than-expected profits.

Stock MarketTechnologyEconomyCorporate Earnings
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Why It Matters

The decline in one of Wall Street's largest companies dragged down major market indexes despite rising prices for the majority of other stocks, while fell to 5.00% amid mixed economic reports.

Key Facts

  • Alphabet’s stock fell 12.9% on Thursday, heading toward its worst day since it began trading over 20 years ago.
  • The S&P 500 fell 0.5% and the Nasdaq composite tumbled 1.5%, while the Dow Jones Industrial Average dropped 0.5% or 263 points by 1:45 p.m. Eastern time.
  • Alphabet reported weaker growth for the summer than analysts expected due to high expenditures on artificial intelligence and property and equipment purchases topping $51 billion.
  • DoorDash agreed to buy Instacart in a deal valuing it at $17 billion and reported stronger profit and revenue.
  • KLA Corp. rose 5.9%, Eli Lilly climbed 5.8%, Mastercard rose 4.2%, and Merck added 4.5% after reporting stronger profits.
  • Norwegian Cruise Line Holdings shares rose 13.3% after topping summertime profit and revenue expectations.
  • The yield on the 10-year Treasury fell to 5.00% from 5.05% following mixed economic reports and a drop in oil prices.
  • The price of Brent crude oil sank 0.9% to $110.67 per barrel.
  • European Central Bank President Christine Lagarde announced she will resign in February, nine months before her term ends.
  • South Korea’s Kospi fell 1.2% due to a 4.1% drop in Samsung Electronics' stock.

Who's Mentioned

PersonChristine Lagarde“President of the European Central Bank who announced her resignation.”OrganizationNorwegian Cruise Line Holdings“Company whose stock steamed 13.3% higher.”OrganizationMastercard“Company whose stock rose 4.2%.”OrganizationKLA Corp.“Semiconductor equipment company whose shares rose 5.9%.”OrganizationGoogle“Subsidiary of Alphabet.”OrganizationEli Lilly“Company whose stock climbed 5.8%.”OrganizationS&P 500“U.S. stock market index that fell 0.5%.”OrganizationAlphabet“Parent company of Google and YouTube experiencing a historic stock drop.”OrganizationYouTube“Subsidiary of Alphabet.”locationSouth Korea“Country whose Kospi index fell 1.2%.”OrganizationSamsung Electronics“Market heavyweight in South Korea whose stock sank 4.1%.”OrganizationNasdaq“Stock market composite index that tumbled 1.5%.”locationWall Street“Financial center where most stocks were rising despite Alphabet's drop.”PersonChan Ho-him“AP Business Writer who contributed to the report.”OrganizationDoorDash“Company that agreed to buy Instacart in a $17 billion deal and saw stock rise 5.”OrganizationEuropean Central Bank“Bank that held interest rates steady.”OrganizationDow Jones Industrial Average“Stock market index that fell 0.5% or 263 points.”OrganizationMerck“Company whose stock added 4.5%.”OrganizationInstacart“Company agreed to be acquired by DoorDash.”