US stocks fall as Nasdaq drops 1.38% on AI spending and inflation concerns

invezz.com (Dutch) —

US stocks fell Thursday as investors reassessed big tech's artificial intelligence spending and digested new inflation data, with the Nasdaq Composite dropping 1.38% to 26,184.72. Alphabet shares plunged 13% after missing earnings and revenue estimates, reporting negative free cash flow of $9.07 billion while maintaining capital expenditure guidance of $195–$205 billion. The S&P 500 fell 0.30%, while the small-cap Russell 2000 rose, indicating weakness concentrated in tech. The Federal Reserve held rates at 3.75%–4% Wednesday, citing elevated inflation. September's PCE price index matched expectations, while Caterpillar fell 9% despite beating estimates, and Eli Lilly, Ford, and Merck gained on strong results.


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