Alphabet's plunge ends Wall Street's winning streak
A three-session advance on Wall Street came to a halt Thursday, with anxiety about the artificial intelligence trade resurfacing after Alphabet published its earnings. The reaction to that report delivered the steepest one-day share decline the company has recorded. The Dow Jones Industrial Average gave up 0.3%, and the Nasdaq composite also moved lower, according to the coverage.[S1]
The pullback was not confined to Alphabet. Pre-market trading showed Google and Marvell each dropping more than 11%, while Lumentum gained more than 6%, according to TradingKey's pre-market report. That split suggests investors were sorting sharply between AI-linked names rather than abandoning the sector uniformly.[S3]
Amazon and Intel results in focus after the close
Attention shifted to Amazon, the rival hyperscaler whose quarterly figures were scheduled for release once the stock market closed. Overnight indications placed Amazon, Intel and Illumina among the earnings losers, a group that followed Google, ServiceNow and Fortinet in weighing on technology shares, according to the coverage.[S1]
TradingKey's pre-market report likewise flagged Amazon and Intel as companies due to report after the close, reinforcing that the next batch of results was the immediate focus for traders.[S3]
Inflation data adds a second test for markets
Before the opening bell, stocks were trading lower as investors positioned themselves for a closely watched inflation report as well as Amazon's earnings, Yahoo Finance reported. The combination of a major macro data point and results from one of the largest technology companies gave traders two separate reasons to stay cautious.[S2]
