US stock markets closed lower on Thursday as investors reassessed the financial risks associated with massive artificial intelligence investments following disappointing quarterly results from Alphabet, Google’s parent company. The Nasdaq Composite fell 1.37% to 26,184.72, while the S&P 500 declined 0.30% to 7,720.39. The Dow Jones Industrial Average dropped 0.25% to 52,342.56. Alphabet shares plunged 12.6% after revenue missed expectations and increased artificial intelligence spending raised concerns about cash consumption. Semiconductor stocks also declined 1.4%, ending a four-day winning streak as investors evaluated which technology companies could sustainably finance their artificial intelligence ambitions. Meanwhile, the Federal Reserve maintained interest rates, while economic data showed stronger-than-expected third-quarter growth alongside rising inflation pressures. Caterpillar shares also dropped 9.3% despite exceeding quarterly profit expectations. Market sentiment remains cautious as investors balance technology growth prospects against rising investment costs.
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