US Markets Today: US stocks end lower as Alphabet revenue miss revives AI capex jitters

Wall Street ended lower on Thursday as Alphabet's revenue miss and rising artificial intelligence spending reignited concerns over whether Big Tech's investments will generate adequate returns. The Nasdaq Composite led losses, while investors assessed stronger than expected economic growth and fresh inflation data a day after the Federal Reserve held interest rates steady, Reuters reported.The Nasdaq fell 1.36% to 26,188.08, while the S&P 500 declined 0.31% to 7,721.02.

The Dow Jones Industrial Average slipped 0.25% to 52,345.80. In contrast, the smallcap Russell 2000 advanced, suggesting investors were finding opportunities beyond the crowded AI trade. US MarketsPowered ByAs on 30 Oct 2026, 01:29 AM ISTS&P 500 Top GainersGen Digital28.20(15.81%)Huntington Ingalls Indus316.61(13.37%)Norwegian Cruise Line18.20(13.29%)Builders FirstSource63.11(12.94%)Gainers»S&P 500 Top LosersServiceNow109.65(-26.96%)Fortinet138.79(-20.28%)Alphabet283.67(-12.69%)Alphabet282.18(-12.34%)Losers»For Highlights on US Markets, click here Alphabet's results put AI spending under scrutinyAlphabet shares slumped after the Google parent reported disappointing quarterly revenue and accelerated AI related cash spending.

The stock's decline weighed on the communication services sector, while semiconductor stocks snapped a four day winning streak, Reuters reported.The sell off reflected growing scrutiny of companies pursuing expensive AI ambitions, particularly those relying on borrowing and heavy cash outflows to fund their expansion.Live Events"There's plenty of other places to go with your money outside of the AI trade that have pretty decent prospects," Mayfield added.Software stocks also came under pressure after Fortinet and ServiceNow fell more than 20% following their quarterly results, Reuters reported.

Marvell Technology dropped after media reports said it was in advanced talks to acquire data centre optics maker Lumentum Holdings, whose shares rose.Strong growth complicates the Fed's inflation outlookEconomic data offered a mixed picture for investors. US gross domestic product grew at an annualised 3.4% in the third quarter, surpassing analyst expectations. However, price pressures continued to intensify, with an oil supply crunch linked to the war adding to broader inflation concerns.The data followed Wednesday's Federal Reserve decision to keep interest rates unchanged.

Policymakers acknowledged that inflation remained "elevated" and said they would assess incoming information before deciding on their next move.Meanwhile, corporate earnings remained broadly resilient. Of the 253 S&P 500 companies that had reported results, 81% exceeded analyst expectations, according to LSEG data cited by Reuters. Analysts expected aggregate third quarter earnings growth of 31% year on year.Eli Lilly rose after raising its revenue outlook on strong weight loss drug sales.

Ford gained following a quarterly revenue beat, while Merck advanced after beating earnings expectations. Caterpillar, however, fell despite topping quarterly profit estimates, Reuters reported.Investors were awaiting Amazon's quarterly results later on Thursday. (Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)(You can now subscribe to our ETMarkets WhatsApp channel)