Wall Street tech losses deepen as Alphabet drags Nasdaq lower

Wall Street suffered significant losses on Thursday, driven by a sharp sell-off in technology stocks led by Alphabet's historic 13% drop, amid doubts about AI spending returns. The Nasdaq fell 1.38%, while the Dow and S&P 500 declined 0.25% and 0.30%, respectively. Investors rotated toward safer assets like government bonds, with the 10-year yield near 4.978%, as nearly 400 S&P 500 companies rose. Strong US GDP growth of 3.4% and rising inflation pressures kept expectations high for a Federal Reserve rate hike in December. Traders priced an 83% chance of a December rate increase, with White House advisor Kevin Hassett suggesting the Fed should act if October inflation data runs hot. Microsoft's $25 billion bond sale drew strong demand, while Amazon and Intel results were awaited.