In brief
On Thursday, Oct. 29, 2026, U.S. indices fell modestly while technology stocks lagged, spurred by Alphabet’s 12‑percent slide after quarterly results that fell short of expectations. Oil prices dipped as hopes for U.S.-Iran peace talks tempered Middle East supply worries. Corporate highlights included losses at Caterpillar, Microsoft, ServiceNow, and Marvell, and gains at Eli Lilly.
U.S. stocks closed lower on Thursday, Oct. 29, 2026, after Alphabet’s share price plummeted more than 12 percent, triggering renewed concerns about the rise in artificial‑intelligence‑related spending. Xinhua reported that the Dow Jones Industrial Average fell 132.54 points, or 0.25 percent, to 52,342.56, the S&P 500 slipped 23.59 points, or 0.30 percent, to 7,720.39, and the Nasdaq Composite shed 365.13 points, or 1.38 percent, to 26,184.72.
Market Overview
Eight of the eleven primary S&P 500 sectors ended the session in the green, but the overall decline was concentrated in technology‑related names. The Nasdaq’s fall, the largest of the three major indices, reflected investor anxiety over the cost of newer AI platforms and models. Morning U.S. futures mirrored the downward trend, with Nasdaq‑100 futures falling 1.17 percent at 8:36 a.m. EDT, according to a report from Proactive Investors.
Oil prices settled lower that day as market sentiment was influenced by the prospect of renewed U.S.‑Iran peace talks, which dampened fears of Middle East supply disruptions. Brent crude futures finished down 0.38 percent at $114.88 a barrel, while West Texas Intermediate crude fell 0.76 percent, closing at $102.00 per barrel.
Alphabet’s third‑quarter bulletin was the main catalyst for the market rout. The company reported revenue of $127.58 billion, a 25 percent year‑on‑year increase that still fell short of analyst expectations. Net income was $26.17 billion, but the company posted negative free cash flow of $9.07 billion. Xinhua described the shortfall as a sharp hit to investor sentiment and a warning about AI investment costs. The stock’s drop eclipsed the fall of other big‑tech names, such as Microsoft, Caterpillar, ServiceNow, Marvell, Amazon, and Intel.
Microsoft’s shares edged lower even as the Azure cloud division grew 48 percent, delivering strong quarterly revenue. The decline reflected concerns that even robust cloud growth cannot fully offset the cloud‑related cost of AI training and infrastructure. Other technology stocks suffered pronounced losses: Caterpillar fell more than 9 percent, ServiceNow plunged about 27 percent, and Marvell dropped 13 percent.
On the upside, Eli Lilly added more than 6 percent after the company upgraded its revenue outlook, offering a modest boost to the broader index. In contrast, Amazon and Intel fell ahead of their earnings reports for the next quarter, adding to the uncertainty surrounding consumer‑tech demand.
The day’s events underscore the growing scrutiny of AI‑related capital outlays. Alphabet’s fall has renewed questions about the sustainability of high‑profile AI initiatives, a theme that resonates across the technology sector despite robust underlying business fundamentals.
Looking forward, market participants are likely to monitor forthcoming earnings releases and geopolitical developments closely, as they may shape investor appetite for technology titles and the broader market’s trajectory.
