FX.co ★ US Stocks Fall Sharply

US equities finished sharply lower on Thursday as a weakening macroeconomic backdrop and renewed skepticism over AI-related spending weighed on sentiment. The S&P 500 fell 1.2%, the Nasdaq 100 declined 1.9%, and the Dow Jones Industrial Average lost 507 points. Communication services and consumer discretionary names were the clear laggards, with technology stocks also under notable pressure.

Alphabet dropped 6.9% despite reporting solid quarterly results, as investors focused on the company’s higher capital-expenditure outlook. Tesla slid 14.5% after profits declined even as electric-vehicle deliveries remained robust. Other major hyperscalers also retreated: Nvidia (-1.6%), Microsoft (-2.2%), Meta (-3.4%), Amazon (-4.6%), Broadcom (-1.1%), and Oracle (-4.6%) all ended the session in negative territory.

In fixed income, Treasury yields climbed, driven by mounting concerns over energy supply disruptions linked to tighter naval blockades in the Middle East and a drop in initial jobless claims to their lowest level in 57 years.

Among financials and industrials, Goldman Sachs fell 2.1%, while Visa slipped 0.5%. Comcast declined 6.8% after reporting lower profits. In contrast, RTX gained 7.3% after delivering results that topped market expectations.