U.S. equities fell for another day on Thursday as investors took a riskoff stance, leading popular trades in technology and bitcoin to unravel.
The Dow Jones Industrials plummeted 605.92 points, or 1.2%, to 48,895.35.
The S&P 500 index wilted 100.12 points, or 1.5%, to 6,782.34
The NASDAQ stumbled 416.08 points, or 1.8%. to 22,488.51.
Alphabet was the latest of the “Magnificent Seven” companies to report earnings results. The company projected a sharp increase in artificial intelligence spending that spooked some investors, calling for 2026 capital expenditures of up to $185 billion. Shares were last down 4%.
Shares of Broadcom jumped 2% following news of Alphabet’s spending plans, offering some hope for the artificial intelligence trade as the market deciphers its winners and losers.
Alongside Alphabet, Qualcomm came under pressure, sliding 9% after posting a weaker-than-expected forecast because of a global memory shortage.
Elsewhere, the selloff in the cryptocurrency market continued to gain steam, as bitcoin fell below $70,000 — which is considered a key support level. In the precious metals space, pressure on silver resumed.
The metal’s prices snapping a two-day rebound and dropping as much as 16%. It had plummeted nearly 30% last Friday.
Adding to the downbeat sentiment, concerns surrounding labor market weakness grew after outplacement firm Challenger, Gray & Christmas reported that U.S. employers announced 108,435 layoffs in January, marking the highest January total since the global financial crisis.
Also, initial jobless claims for the week ended Jan. 31 rose more than expected, according to the Labor Department.
Prices for the 10-year Treasury surged, sharply lowering yields to 4.21% from Wednesday’s 4.28%. Treasury prices and yields move in opposite directions.
Oil prices fell back $2.14 to $63.00 U.S. a barrel.
Gold prices weakened $113.10 to $4,837.70 U.S. an ounce.
