Alphabet posts worst day since 2004, shedding about $500 billion as AI eats into search

Google parent fell 12.6% after missing on sales and profit, dragging the Nasdaq down 1.38% even as healthcare, small caps and bonds rallied; Amazon and Intel then sank after the bell.

Deepakshi

Kristal Research & Marketing team

30 Oct

Key takeaways — AI summary

Alphabet dropped 12.6% on Thursday, its worst session since its 2004 listing, wiping out roughly $500 billion in value after Google missed on both sales and profit for the first time since 2022; search revenue grew 12% versus 14.7% expected and free cash flow turned negative $9.1 billion as AI spending outran income.
The Nasdaq Composite fell 1.38% to 26,184.72 and the S&P 500 slipped 0.30% to 7,720.39, ending a three-day streak, but most stocks rose — healthcare gained 2.4%, real estate 2.2% and the Russell 2000 1.0% — as UBS traders described a rotation out of crowded AI names into value and small caps.
Software and cybersecurity were hit hard, with ServiceNow down 27% and Fortinet down 20%, while Caterpillar slid 9.3% on a cautious outlook; after the bell Amazon fell about 6-7% and Intel about 17-23%.
Bonds rallied, pushing the 10-year Treasury yield to 4.98%, back below 5%; Q3 GDP grew at a 3.4% annual pace and jobless claims fell to 194,000, but the PCE price index rose 3.6% year-on-year and CME FedWatch puts December hike odds near 78% after the Fed held at 3.75-4.00%.
Oil (WTI) held above $100 at $102.00 (-0.76%) and gold eased to $3,994 (-0.68%), back under $4,000 in Asian trade.

Generated by Kristal AI · reviewed by the research desk

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