US markets today: Alphabet drags Wall Street lower; bitcoin, gold and silver slide
US stock markets declined on Thursday as weakness in technology stocks, led by Alphabet, dragged benchmark indices lower, while bitcoin and precious metals also recorded sharp losses, according to AP.The S&P 500 fell 0.8% and was heading toward its sixth loss in the seven days since setting an all-time high. The Dow Jones Industrial Average declined 326 points, or 0.7%, as of 9:35 a.m. Eastern time, while the Nasdaq composite dropped 0.8%.Alphabet fell 5.4% even though the parent company of Google reported stronger profit for the latest quarter than analysts expected. Investors instead focused on its aggressive artificial intelligence spending plans. Alphabet said its spending on equipment and other investments could double this year to about $180 billion, far exceeding analysts’ expectations of less than $119 billion, according to FactSet.In the bond market, Treasury yields fell after labour market data pointed to rising stress. A report showed US unemployment benefit applications increased more than economists had expected last week, signalling a possible acceleration in layoffs. Another report showed layoffs announced by US-based employers surged to 108,435 last month, the highest monthly level since October and the worst January since 2009, according to Challenger, Gray & Christmas.The weaker labour outlook raised expectations that the Federal Reserve may cut interest rates to support the economy, even if it risks worsening inflation. The yield on the 10-year Treasury fell to 4.23% from 4.29% late Wednesday.Commodities markets saw sharper swings. Silver tumbled 12.1% amid continued volatility after last week’s record-breaking rally stalled. Gold fell 1.9% to $4,855 per ounce after swinging sharply in recent sessions. The metal had neared $5,600 last week before dropping below $4,500 earlier this week.Both gold and silver had surged earlier as investors sought safe-haven assets amid concerns over political instability, expensive equity valuations and high global debt levels. However, analysts had warned that such extreme rallies could trigger corrections.Bitcoin, often referred to as “digital gold,” also fell and briefly slipped below $70,000, compared with its record above $124,000 in October.Among individual stocks, Qualcomm dropped 9.1% despite reporting better-than-expected profit and revenue. The company issued a weaker profit forecast due to an industrywide memory shortage affecting handset demand.Outside the technology sector, Estee Lauder fell 16.9% despite beating earnings estimates, after warning that tariff-related pressures could reduce profit by about $100 million in its fiscal year.Globally, stock markets were also weak. London’s FTSE 100 fell 0.9% after the Bank of England kept interest rates unchanged. France’s CAC 40 declined 0.6%, while Germany’s DAX lost 1.1% after the European Central Bank also held rates steady.In Asia, South Korea’s Kospi fell 3.9%, dropping from its record high. Samsung Electronics declined 6%, two days after surging 11.4%.
