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NewsWPLG Local 10October 29, 2026Miami-Dade County

Alphabet stock drop drags US market lower amid AI spending concerns

Photo: WPLG Local 10

A historic drop in Alphabet's stock pulled the U.S. market lower Thursday following weaker-than-expected summer growth and heavy spending on artificial intelligence. The S&P 500 fell 0.3% and the Nasdaq composite tumbled 1.2%, while most other Wall Street stocks rose.

Stock MarketArtificial IntelligenceEconomyCorporate EarningsInterest Rates
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Why It Matters

Alphabet's 11.8% decline weighed down major indexes despite rising profits at other companies like Eli Lilly and DoorDash, highlighting investor anxiety over the financial returns of massive corporate investments in artificial intelligence.

Key Facts

  • Alphabet's stock dropped 11.8%, heading toward its worst day since it began trading more than 20 years ago.
  • Alphabet's property and equipment purchases topped $51 billion, leading to increased cash burn.
  • The S&P 500 fell 0.3% and the Nasdaq composite tumbled 1.2% following Alphabet's decline.
  • The Dow Jones Industrial Average fell 0.2%, or 104 points, to 11:15 a.m. Eastern time.
  • DoorDash agreed to buy Instacart in a deal valuing Instacart at $17 billion.
  • Norwegian Cruise Line Holdings shares rose 14.1% after topping summertime profit and revenue expectations.
  • The yield on the 10-year Treasury fell to 4.98% from 5.05%.
  • Brent crude oil prices sank 2% to $109.42 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% following a 4.1% drop in Samsung Electronics stock.

Who's Mentioned

PersonChristine Lagarde“President of the European Central Bank who announced she will resign.”OrganizationNorwegian Cruise Line Holdings“Company whose stock rose 14.1%.”OrganizationMastercard“Company whose stock rose 4.7%.”OrganizationKLA Corp.“Semiconductor equipment company whose stock rose 6.7%.”OrganizationGoogle“Subsidiary of Alphabet.”OrganizationEli Lilly“Company whose stock climbed 6.4%.”OrganizationS&P 500“Stock market index that fell 0.3%.”OrganizationAlphabet“Parent company of Google and YouTube experiencing a historic stock drop.”OrganizationYouTube“Subsidiary of Alphabet.”locationSouth Korea“Country where the Kospi index fell 1.2%.”OrganizationSamsung Electronics“Market heavyweight whose stock sank 4.1%.”OrganizationNasdaq“Stock market composite that tumbled 1.2%.”locationWall Street“Financial center where most stocks were rising.”PersonChan Ho-him“AP Business Writer who contributed to the report.”OrganizationDoorDash“Company that agreed to buy Instacart in a $17 billion deal.”OrganizationEuropean Central Bank“Bank that held interest rates steady on the continent.”OrganizationDow Jones Industrial Average“Stock index down 0.2% or 104 points.”OrganizationMerck“Company whose stock added 5.1%.”OrganizationInstacart“Company being acquired by DoorDash.”