Key facts
- Alphabet shares fell 12.6% on Thursday, a record decline.
- The communication services sector fell 6.6%, its biggest drop since February 2022.
- ECB President Christine Lagarde resigned, effective February next year.
- US stocks declined: Nasdaq -1.4%, Dow and S&P 500 -0.3%.
US stocks declined on Thursday, with the Nasdaq Composite, Dow Jones Industrial Average, and S&P 500 all ending lower. The downturn was largely driven by a record 12.6% fall in Alphabet shares following its third-quarter earnings report, which highlighted increased AI spending and missed expectations. This decline in the tech giant's stock dragged down the communication services sector, which experienced its largest drop since February 2022. Investor concerns over AI spending and cash burn resurfaced, overshadowing positive economic data, lower bond yields, and weaker oil prices. In other news, European Central Bank President Christine Lagarde announced her resignation, effective February next year, citing a need to speak more freely on unidentified major events.