By William Collins, consultant in stock markets – Eurasia Business News, October 29, 2026. Article no 3233
Alphabet shares plunged on Thursday, October 29, after disappointing advertising results and heavy AI spending reignited doubts about technology-sector profitability. The Google parent traded approximately 13% lower in the supplied market update, putting it on course to lose around $500 billion in market value. The Nasdaq Composite fell about 1.6% as investors reassessed the costs of the AI boom.
Those figures were intraday readings, not confirmed closing results. If sustained, Alphabet’s reported decline would exceed its 11.6% one-day loss in 2020. The episode highlighted the market’s increasing sensitivity to the gap between growing AI usage and the profits companies can generate from it.
The Dow Jones Industrial Average fell almost 0.3%, while the S&P 500 lost roughly 0.3%. The tech-heavy Nasdaq Composite fell about 1.4%.
Why Alphabet Stock Fell
Google’s advertising business missed analysts’ expectations, while free cash flow declined as the company expanded its AI infrastructure. Shares had already fallen approximately 10% in after-hours trading following the earnings release.
The results exposed a central challenge: AI can increase product usage without immediately producing proportionate revenue. According to the supplied earnings account, growing use of AI Mode searches contributed to weaker-than-expected search revenue because those interactions were less profitable than traditional searches.
That creates a difficult balancing act. Alphabet must invest to remain competitive while protecting the advertising engine that finances its expansion. Investors’ reaction suggests they wanted clearer evidence that monetization could keep pace with adoption.
Nasdaq Faces Another AI Reality Check
The selloff followed renewed optimism around Anthropic’s proposed IPO and strong demand for computing infrastructure. Alphabet’s results shifted attention back toward cash generation rather than technological ambition.
Reuters reported that U.S. stocks opened lower as Alphabet’s figures revived concern about soaring AI costs. The broader implication is not that AI demand has disappeared, but that investors are becoming less willing to overlook expenditure without convincing financial returns.
U.S. GDP and Inflation Complicate the Outloo
Economic data added another challenge. The advance estimate showed U.S. GDP expanding at a 3.4% annualized rate in the third quarter, up from 2.2% in the second. That is an annualized quarterly growth rate, not a 3.4% increase over three months.
The quarterly core PCE measure rose at a 2.5% annualized pace, above the expected 2.4% but below the previous quarter’s 3.3%. The combination of resilient growth and persistent inflation reinforced expectations that monetary policy could remain restrictive.
Brent and WTI Oil Prices at Settlement
Brent crude settled 44 cents lower at $114.88 per barrel, while West Texas Intermediate fell 78 cents to $102.00. These verified settlement figures differ from the supplied reference to Brent below $110, which should not be presented as the same contract’s closing price.
Diplomatic developments eased some supply fears. The Wall Street Journal reported that Vice President JD Vance had written to Iranian official Mohsen Rezaei in an effort to restart peace negotiations.
European Gas and ECB Leadership in Focus
Europe entered winter with gas prices under pressure: the TTF benchmark briefly reached €100/MWh on October 28, its highest level since December 2022, amid disrupted Middle Eastern LNG shipping. That milestone is not an October 29 settlement quotation.
The ECB kept its deposit rate at 2.50%. Separately, Christine Lagarde announced plans to leave in February, before her scheduled October departure, opening a succession contest during a difficult period for European policy.
Gold and Silver Prices
Spot gold price was at $4,015.60 per troy ounce, down more than 1%, and silver at $52.06, down more than 3%, in its October 29 report. These were timestamped spot readings, not final settlements.
Read also : Gold : Build Your Wealth and Freedom
Silver’s heavier decline reflected weaker investment demand and improving physical availability, according to Metals Focus. The day’s defining issue was profitability: markets demanded evidence that growth could withstand expensive capital and persistent inflation.
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© Copyright 2026 – Eurasia Business News. Article no. 3233
