Wall Street falls as tech selloff hits Nasdaq

US stocks fell Thursday as technology and AI-related shares sold off following disappointing earnings from major companies, with the Nasdaq dropping 1.38%. The Dow Jones Industrial Average closed down 132.54 points (-0.25%) at 52,342.56, while the S&P 500 fell 0.30% to 7,720.39. Alphabet shares plunged 12% after reporting third-quarter revenue and earnings per share below analyst estimates, with negative free cash flow of $9.07 billion. Caterpillar dropped over 9% on weak construction sales, while semiconductor and AI infrastructure stocks also faced selling pressure. September PCE inflation rose 0.5% month-over-month, increasing market expectations for a Federal Reserve rate hike in December. European and UK markets closed higher after the European Central Bank held rates steady, though it warned of rising inflation risks from energy prices. Oil prices fell on hopes for US-Iran peace talks, while gold dropped 1% as the dollar weakened slightly.