FX.co ★ US Stocks Fall, Alphabet Tumbles

US stocks fell on Thursday, with the S&P 500 down 0.5%, the Nasdaq off 1.4% and the Dow Jones Industrial Average losing 310 points. Sentiment weakened as fresh doubts emerged about the durability of the AI-driven rally following disappointing results from several hyperscalers. Alphabet sank more than 12% after missing both earnings and revenue estimates, weighing heavily on the communication services sector and contributing to broad underperformance in technology shares. Amazon and Intel, which were set to report after the closing bell, slipped 3.1% and 2.2%, respectively. Caterpillar dropped nearly 12% after projecting only “moderate” sales growth for the fourth quarter. In contrast, Microsoft rose 0.8% on the back of strong cloud revenue. Eli Lilly jumped 7.3% after raising its revenue outlook amid robust demand for its weight-loss treatments, while Merck gained 3.3% after upgrading its guidance. On the macro front, new data showed the US economy grew at a faster-than-expected 3.4% annualized pace in the third quarter, while PCE inflation picked up in September.