ASX set to edge up as Alphabet's plunge drags Wall Street lower; Lagarde resigns

Alphabet’s stock plunged 12.9 percent, heading for its worst day since trading began, after reporting weaker-than-expected growth and dragging Wall Street lower. The S&P 500 fell 0.5 percent, while the Nasdaq tumbled 1.5 percent, though the Australian sharemarket is set to rise slightly at the open. Alphabet’s decline stemmed from concerns about its massive AI investments, with free cash flow dropping after property and equipment purchases topped $51 billion. Most other Wall Street stocks rose, including KLA Corp, Eli Lilly, and Mastercard, while DoorDash gained after agreeing to buy Instacart for $17 billion. Treasury yields eased to 5.00 percent following mixed US economic reports, and oil prices fell. European Central Bank President Christine Lagarde announced her resignation effective February, while Asian markets were mixed, with Samsung Electronics dropping 4.1 percent despite higher profits.