Alphabet tumbles 12.8%, pulling US stock indexes lower

Alphabet shares fell 12.8% during Thursday trading after the company reported weaker-than-expected summer growth, pulling major U.S. stock indexes lower, according to The Korea Times. The decline put Alphabet on course for its worst trading day since its debut more than 20 years ago.

Alphabet’s market influence overwhelmed gains in most S&P 500 stocks; the index would have risen without its decline, The Korea Times reported. The results sharpened concerns about returns on artificial intelligence investments as elevated borrowing costs constrain future data-center spending.

The S&P 500 was down 0.6%, while the Nasdaq composite fell 1.6%. The Dow Jones Industrial Average lost 269 points, or 0.5%, according to The Korea Times. Those figures reflected trading in progress, not final closing results.

Alphabet reported late Wednesday that it had burned through more cash in its latest quarter after purchases of property and equipment exceeded $51 billion. The Korea Times linked the results to investor concerns about whether the company’s substantial AI spending would produce sufficient returns.

Other corporate reports supported share prices. KLA, Eli Lilly, Mastercard and Merck rose after summer profits exceeded expectations, the newspaper reported.

DoorDash gained 4.9% after reporting quarterly profit and revenue above expectations and announcing an agreement to acquire Instacart at a valuation of $17 billion. Norwegian Cruise Line Holdings rose 13.8% after beating summer profit and revenue forecasts, helped partly by stronger-than-expected spending onboard.

U.S. economic reports offered a mixed picture, according to The Korea Times. Preliminary summer growth exceeded expectations, but September income growth fell short and one inflation measure worsened. Applications for unemployment benefits declined.

The 10-year Treasury yield slipped to 4.98% from 5.05% late Wednesday. In South Korea, the Kospi fell 1.2% as Samsung Electronics shares dropped 4.1% despite an increase in profit, the newspaper reported.

Alphabet’s potential record decline remained an intraday assessment. The Korea Times report did not establish whether the stock ultimately recorded its worst closing performance since it began trading.