Nasdaq 100 Falls 1.5% as AI Trade Shows New Cracks: Markets Wrap
(Bloomberg) — A global rally in technology shares faltered as disappointing earnings from two industry heavyweights revived doubts over whether billions of dollars in artificial-intelligence spending will deliver sufficient returns.
The Nasdaq 100 fell about 1.5%. Google’s parent Alphabet Inc. sank a record 13% on a sales miss. Samsung Electronics Co. boosted AI spending, but failed to outline plans to share ballooning profits. Microsoft Corp. is looking to raise at least $25 billion from a US investment-grade bond sale. Amazon.com Inc. and Intel Corp. will report results after the closing bell.
“The sorting has begun, as tech companies are now solely being judged on their AI spending, which is bound to create winners and losers. We are now getting to see who is spending rationally on AI and who is not,” said Richard Reyle at Questar Capital Partners.
Just a day after the Federal Reserve left rates steady, data showed the US economy expanded in the third quarter at the fastest pace in a year. Meanwhile, the personal consumption expenditures price index — the Fed’s preferred inflation measure — rose 0.5% in September, the most in six months.
“The economy has a remarkable ability to withstand elevated borrowing costs and high interest rates,” said Reyle. “While the Fed may have been given a pass this time since the market has done the tightening for them, they will likely need to raise again in December.”
While energy costs remain high, a drop in oil prices drove bond yields lower on Thursday. The European Central Bank kept rates unchanged as news that President Christine Lagarde will step down early added to concern over energy costs and France.
Corporate Highlights:
ServiceNow Inc. gave an outlook for quarterly subscription sales that met analysts’ estimates, but failed to quell Wall Street’s anxieties that artificial intelligence will disrupt the software maker. Marvell Technology Inc. is in advanced talks to buy data center optics maker Lumentum Holdings Inc., according to people familiar with the matter, putting it on the cusp of a potential megadeal amid the race to scale up in the artificial intelligence sector. DoorDash Inc. agreed to buy rival Instacart in a deal that values the company at about $17 billion, the latest sign of consolidation in an increasingly competitive delivery market. Caterpillar Inc. posted earnings that only modestly beat expectations, adding to investor jitters about mounting challenges to the AI infrastructure boom. Mastercard Inc. reported earnings that beat analyst estimates as the company benefited from increased spending from US consumers. Eli Lilly & Co. raised its full-year sales forecast as demand for its blockbuster obesity and diabetes drugs continues to surge. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.5% as of 10 a.m. New York time The Nasdaq 100 fell 1.5% The Dow Jones Industrial Average fell 0.4% The Stoxx Europe 600 rose 0.9% The MSCI World Index fell 0.2% Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.2% to $1.1133 The British pound was little changed at $1.3322 The Japanese yen was little changed at 157.83 per dollar Cryptocurrencies
Bitcoin fell 1.3% to $80,199.45 Ether fell 1.5% to $2,324.43 Bonds
The yield on 10-year Treasuries declined four basis points to 4.98% Germany’s 10-year yield declined four basis points to 3.33% Britain’s 10-year yield declined five basis points to 5.27% Commodities
West Texas Intermediate crude fell 2.3% to $100.46 a barrel Spot gold fell 1.1% to $4,022.13 an ounce –With assistance from Robert Brand.
©2026 Bloomberg L.P.
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