Wall Street Slides as AI Jitters Return and Alphabet Sinks
US stocks fell on Thursday, October 29, 2026, led by the tech-heavy Nasdaq (about -1.4%), as a 12% drop in Alphabet and a sharp fall in ServiceNow reignited worries about AI spending and valuations. The Dow and S&P 500 also closed lower.
A tech-led decline
US stocks fell on Thursday, October 29, 2026, with the tech-heavy Nasdaq the weakest major index. Yahoo Finance reported the Nasdaq down about 1.4%, the Dow Jones Industrial Average off about 0.6%, and the S&P 500 down about 0.5%. Intraday figures cited by other outlets were smaller, so the exact close depends on the source.
What drove it
The main catalyst was Alphabet, whose shares tumbled about 12% after quarterly results intensified concerns that AI could pressure its core search-and-advertising business. A steep drop in software name ServiceNow added to the unease, reviving a broader debate about whether richly valued AI-linked stocks have run ahead of fundamentals.
The week in context
The move capped a volatile stretch. In the prior session on October 28, the S&P 500 eased about 0.3% to 7,720.39, the Nasdaq Composite fell about 1.38% to 26,184.72, and the Dow slipped about 0.25% to 52,342.56, according to CNBC. Not every large-cap disappointed — Microsoft's results beat expectations and its shares rose after hours — but the tape was dominated by AI-related caution.
What to watch
With several megacap earnings landing in the same window, investors are weighing how much of today's spending on AI infrastructure will translate into profit, and how soon. Expect continued sensitivity to capital-expenditure guidance and any sign that AI monetization is lagging the investment.
Sources:
- Yahoo Finance: Dow, S&P 500, Nasdaq slip as Alphabet sinks 12% and AI jitters return
- TheStreet: S&P 500 falls after Alphabet and Microsoft issue divergent earnings
- CNBC: Markets close lower as Alphabet and Caterpillar fall (Oct 28)
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This article summarizes publicly reported news for general information only and is not financial advice. Figures were still being confirmed at the time of writing; see the linked sources for the latest details.