US Market Falls on Alphabet AI Spending, Job Data

The U.S. stock market experienced a significant downturn on Thursday, primarily driven by a sharp drop in Alphabet Inc. shares. Investors reacted negatively to Alphabet Inc.'s projected increase in artificial intelligence spending, which is expected to double to $180 billion this year, despite the company reporting stronger-than-expected profits. Concurrently, discouraging news from the United States job market, including a jump in unemployment benefit applications, a surge in layoffs (highest January since 2009), and the lowest number of job openings in over five years, further fueled market anxieties. This weakness in the job market could pressure the United States — Federal Reserve to cut interest rates. In commodity markets, Bitcoin, Silver, and Gold prices also saw sharp declines, with Bitcoin dropping below $68,000 and Silver experiencing a significant tumble. Companies like Coinbase and MicroStrategy, heavily involved in crypto, saw their stocks fall. Qualcomm and Estée Lauder Companies also faced declines due to various factors, including supply chain issues and tariff-related headwinds. Conversely, companies like Broadcom and McKesson Corporation saw gains, with Broadcom benefiting from AI spending and McKesson Corporation reporting strong earnings.