US Stocks Post Heavy Losses
The S&P 500 fell 1% and the Nasdaq slid 1.1% on Thursday as a tech led pullback stretched into a third session, while the Dow also dropped 1%, with consumer discretionary and communication services among the weakest performers as investors trimmed exposure to crowded big cap positions. ‘
Alphabet (-0.6%) weighed on sentiment after flagging a sharp rise in AI related capital spending, with 2026 capex guided toward the upper end of a $175 to $185 billion range, reviving doubts over how quickly heavy AI investment will translate into earnings. Semiconductor stocks also came under pressure as Qualcomm tumbled 8.4% on a cautious outlook tied to softer memory demand and inventory strains, deepening losses across the chip complex.
The risk off tone was reinforced by macro data showing weekly initial jobless claims rising to 231K in the week ended January 31 and corporate layoff announcements jumping to 108K in January, the highest January total since 2009, pointing to cooling labour conditions.
Source: Tradingeconomics.com
