4:20pm: Wall Street closes lower
US stocks ended lower on Thursday as a sharp sell-off in Alphabet reignited concerns about the returns on heavy artificial intelligence investment, while stronger economic growth and accelerating inflation added to the market’s uncertainty.
The Dow Jones Industrial Average fell 133 points, or 0.3%, to 52,343, while the S&P 500 shed 24 points, or 0.3%, to 7,720. The Nasdaq Composite dropped 365 points, or 1.4%, to 26,185.
Alphabet shares closed around 12% lower after the Google parent reported disappointing third-quarter revenue, weighing on the broader technology sector and prompting renewed scrutiny of the capital spending required to build AI infrastructure.
The declines were concentrated in large technology stocks, with around 390 S&P 500 constituents advancing despite the benchmark’s fall, suggesting investors were rotating into other parts of the market.
Economic data offered a mixed picture for investors. US gross domestic product expanded at an annualized rate of 3.4%, its fastest pace in a year and ahead of expectations, pointing to continued economic resilience.
However, core personal consumption expenditures inflation, the Federal Reserve’s preferred inflation measure, rose 0.5% in September. The combination of stronger growth and persistent price pressures could complicate the outlook for interest rates.
Attention now turns to a busy slate of earnings after the closing bell, with Amazon, Intel, Gilead Sciences, SanDisk, Starbucks and Strategy among the companies due to report.
3:30pm: Small cap wrap
Snail Inc (NASDAQ:SNAL) launched Dead Party, a four-player cooperative zombie survival game developed by Radiation Blue, on Steam ahead of Halloween.
Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF, FRA:9SU0) recorded radioactivity readings of up to 48,000 counts per second at the Manhattan East showing at its Corvo uranium project in Saskatchewan, more than four times the previous high.
Phunware Inc (NASDAQ:PHUN, FRA:2RJA) CEO Dmitry Kroshka outlined a strategy to transform the company into an AI-enabled intelligence platform for hospitality and healthcare customers.
Immunic Inc (NASDAQ:IMUX, FRA:10VA) will host a virtual R&D Day on November 5 to outline plans for a Phase 3 trial of its lead multiple sclerosis drug candidate, vidofludimus calcium, later in 2026.
374Water Inc (NASDAQ:SCWO, FRA:8LL) said the US EPA’s new PFAS technology strategy recognizes supercritical water oxidation, the company’s core technology, as a destruction method the agency plans to advance.
New Era Energy & Digital (NASDAQ:NUAI) signed a securities purchase agreement for a private placement expected to raise about US$64 million to support leasing negotiations for its Texas data center project.
Pinnacle Silver & Gold Corp (TSX-V:PINN, OTCQB:PSGCF, FRA:P9J) is planning a 16-hole diamond drilling program at its Potrero project in Durango, Mexico, to test a potential extension of the nearby Topia mine system.
Midnight Sun Mining Corp (TSX-V:MMA, OTCQB:MDNGF) appointed Brett Richards as chairman and nominated two independent directors for election as it advances its Dumbwa copper project in Zambia.
2:30pm: Market movers
Microsoft Corp (NASDAQ:MSFT) shares reversed early gains despite better-than-expected quarterly results, as investors weighed strong AI demand against plans for higher infrastructure spending.
Alphabet Inc (NASDAQ:GOOG) shares fell more than 11% after third-quarter revenue and earnings missed expectations, with weaker search and YouTube advertising results overshadowing strong Google Cloud growth.
Fortinet Inc (NASDAQ:FTNT) shares plunged nearly 23% after the cybersecurity company cut its full-year service revenue forecast, overshadowing better-than-expected third-quarter results and an improved 2026 revenue outlook.
Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF, FRA:9SU0) recorded radioactivity readings of up to 48,000 counts per second at the Manhattan East showing at its Corvo uranium project in Saskatchewan, more than four times the previous high.
Phunware Inc (NASDAQ:PHUN, FRA:2RJA) CEO Dmitry Kroshka outlined a strategy to transform the company into an AI-enabled intelligence platform for hospitality and healthcare customers.
Marvell Technology Inc (NASDAQ:MRVL) shares dropped 12% following reports of advanced acquisition talks with optical components maker Lumentum Holdings, as investors weighed the potential cost and financing challenges of a deal.
Eli Lilly and Co (NYSE:LLY) shares rose more than 6% after the drugmaker reported third-quarter revenue of $24.4 billion, up 39% year over year, and raised its full-year revenue outlook.
DoorDash Inc (NYSE:DASH) shares gained more than 6% after the company reported stronger-than-expected third-quarter results and announced a roughly $17 billion cash-and-stock agreement to acquire Instacart (NASDAQ:CART).
Merck & Co Inc (NYSE:MRK, XETRA:6MK) shares rose 5.17% after third-quarter revenue reached $18.1 billion, beating estimates, as strong Keytruda and Winrevair sales helped the company raise the midpoint of its full-year sales outlook.
Carvana Co. (NYSE:CVNA) shares jumped more than 16% after the online used-car retailer reported record third-quarter revenue of $8.04 billion, up 42% year over year, as retail vehicle sales reached a quarterly high.
Mastercard Inc (NYSE:MA) reported a 14% increase in third-quarter revenue to $9.8 billion and an 18% rise in net income to $4.6 billion, driven by growth in its global payments network and value-added services.
eBay Inc (NASDAQ:EBAY, XETRA:EBA) reported a 14% increase in third-quarter revenue to $3.2 billion as gross merchandise volume rose 15% to $23.2 billion, although GAAP net income fell 16% to $501 million.
1:25pm: Demand outpacing economy’s capacity: Adams
Fifth Third chief economist Bill Adams said rising prices, rather than increased purchasing power, accounted for last month’s growth in consumer spending, while falling real incomes pushed the saving rate to a multiyear low.
Adams noted that the saving rate does not reflect Americans’ income from capital gains, but offers insight into financial pressures on low- and middle-income households and helps explain weak consumer sentiment.
“Real GDP growth picked up in the third quarter, supported by solid growth of consumer spending and a surge of business capex,” Adams said. He added that core domestic demand grew at its fastest pace since 2021, while the widening trade deficit could reinforce the Federal Reserve’s concerns that demand is outpacing the economy’s capacity, strengthening the case for further interest rate increases.
12:15pm: FTSE closes higher
London’s FTSE index finished on a high note at 10,730 points for a 0.3% gain on the day.
Over on Wall Street, US inflation remained firm in the third quarter, with core personal consumption expenditures (PCE) inflation rising 3.1% year over year in line with expectations, while headline PCE inflation accelerated to 3.6% from 3.4%.
On a monthly basis, core PCE rose 0.3%, matching forecasts and up from 0.2% previously. Headline PCE increased 0.5%, also in line with estimates, compared with 0.3% in the prior reading.
US gross domestic product (GDP) grew at an annualized rate of 3.4% in the third quarter, beating expectations for 3.2% and accelerating from 2.2% in the previous quarter.
However, real consumption was flat against expectations for 0.1% growth, slowing sharply from 0.6% previously.
11:10am: Alphabet wipes $500B in valuation
Alphabet shares are down almost 12% after Wall Street digested a disappointing earnings report.
XTB’s Kathleen Brooks said Alphabet’s results have exposed growing investor concerns about the cost of the AI boom, with the company reporting two consecutive quarters of negative cash flow as it invests heavily in AI infrastructure.
“The big problem for investors when it comes to AI is the cost of the payoff,” Brooks said, adding that Alphabet’s cash flow performance was unacceptable to investors and had contributed to a roughly 10% pre-market decline in its shares.
Brooks said the AI trade was becoming increasingly selective rather than moving as a unified group. Microsoft’s shares rose 3.5% after results impressed investors, while upcoming earnings from Amazon and Apple would provide further tests of sentiment towards the sector.
10:00 am ET: AI spending fears back
As indicated in pre-market trade, US stocks opened lower on Thursday as Alphabet’s results reignited concerns about soaring AI costs, while investors assessed fresh inflation data following the Federal Reserve’s decision to hold interest rates steady.
The Dow Jones Industrial Average fell 389p, or 0.74%, to 52,086.13 at the open, while the S&P 500 dropped 44.4p, or 0.57%, to 7,699.61.
The technology-heavy Nasdaq Composite fell 348p, or 1.31%, to 26,201.823, leading the declines as concerns about AI spending weighed on technology stocks.
Wall Street is trying to understand the inflation outlook and what it means for the Federal Reserve’s next move on interest rates.
The US economy grew at an annualised rate of 3.4% in the third quarter, accelerating from 2.2% in the previous quarter and beating Wall Street’s 3.2% forecast, as the AI spending boom continued to support growth.
Real final sales to private domestic purchasers, a closely watched measure of underlying demand, rose 4.9%, up from 4.6% in the second quarter.
Higher government spending also supported growth, partly offset by increased imports, which weigh on GDP.
US inflation accelerated in September as higher gasoline and goods prices pushed up consumer costs, reinforcing expectations that the Federal Reserve could raise interest rates in December.
The Personal Consumption Expenditures (PCE) price index rose 0.5% in September, following a 0.3% increase in August, according to data released by the Commerce Department’s Bureau of Economic Analysis on Thursday, matching economists’ forecasts.
Annual PCE inflation increased to 3.6% from 3.4% in August.
In the first few minutes after open, Alphabet’s shares tumbled 12.8% to $283.35, after its third-quarter 2026 results, released after Wednesday’s close, missed expectations for earnings per share, revenue and free cash flow, rattling investor confidence.
Microsoft and Mastercard were trading higher, rising 1.09% to $536.78 and 4.50% to $637.80, respectively, while Amazon fell 3.95% to $244.54 in very early trade.
Doordash shares were up 4.88% to $177.76 in early trade. This followed news that Doordash will acquire Instacart (NASDAQ:CART).
European markets were in the green on Thursday afternoon.
The European Central Bank, on the other hand, left interest rates unchanged on Thursday, as expected, but warned that rising energy costs were increasing inflation risks, potentially strengthening market expectations of a December rate hike.
At 13:47 GMT:
The FTSE 100 was up 0.62%, or 66.19p, to 10,760.69.
The FTSE 250 rose 0.29%, or 71.03p, to 24,710.29.
The FTSE 100’s advance was being driven largely by energy stocks, while weakness in healthcare and banking shares limited gains.
Shell leads energy shares, leading the Energy sector gained nearly 2.8%, despite a dip in oil prices.
Banking sector stocks, however, weighed on the gains: Lloyds Banking Group fell 4.3% after reporting muted third-quarter results.
9:00 am EDT: US futures down
US stock futures fell on Thursday as disappointing Alphabet sales revived concerns over AI spending.
At 8:36 am EDT Nasdaq 100 futures fell 1.17% to 29,629.50, down 350p, signalling the heaviest pressure on technology stocks.
S&P 500 futures dropped 0.38% to 7,753.75, down 29.50p, pointing to broader market weakness.
Dow Jones futures slipped 0.28% to 52,551, down 145p, indicating that selling pressure extends beyond technology.
Alphabet shares slumped despite 103% growth in Google Cloud, as investors questioned rising AI costs and returns, while weakness spread to chipmakers and software stocks.
The next tests are the US personal consumption expenditures inflation report and Amazon’s earnings, which could determine whether the sell-off broadens or eases.
Technology and software stocks are leading the declines after Alphabet’s results in pre-market trading on Thursday.
Crocs (CROX) leads the gainers, surging 17.84% to $141.04, followed by Insmed, up 13.86% to $110.42, and Norwegian Cruise Line, which has risen 11.28% to $17.87.
DoorDash has agreed to acquire rival Instacart (NASDAQ:CART) in a deal valuing the grocery delivery company at about $17 billion, marking a major consolidation in an increasingly competitive delivery market, reports WSJ.
Following the news, in pre-market trading, DoorDash has climbed 7.90% to $182.88, adding $13.39.
London’s stock market is trading higher post lunch Thursday, supported by gains in energy shares after Shell reported strong quarterly earnings and announced a $5 billion share buyback.
At 12:53 pm GMT, the FTSE 100 was up 0.55%, or 59.02p, to 10,753.52, while the FTSE 250 has gained 0.18%, or 44.17p, to 24,683.43.
Oil prices fell on Thursday as investors weighed renewed diplomatic efforts to contain the Middle East conflict against fears of further US strikes on Iran and attacks on Saudi energy infrastructure.
Brent crude futures for January delivery dropped 1.01% to US$110.51 a barrel, down US$1.13, although concerns over potential supply disruptions continued to support prices.
Gold prices fell on Thursday after the Federal Reserve held interest rates steady and offered limited guidance on the outlook for monetary policy, with spot gold dropping 0.93%, or US$37.96, to US$4,029.50 an ounce, while December gold futures declined 0.24%, or US$9.75, to US$4,041.85 an ounce.
Best of the brokers
St James’s Place (St James’s Place PLC (LSE:STJ)): Shares −5% to 1,051p after Q3 net inflows missed expectations; Panmure Liberum ‘buy’ maintained, 1,600p target
Lloyds (Lloyds Banking Group PLC (LSE:LLOY)): Shares −6% to 97.44p after Q3 results showed small misses; Jefferies ‘buy’ maintained, 127p target (~22% upside)
Reckitt (Reckitt Benckiser Group PLC (LSE:RKT, OTCQX:RBGLY)): Q3 sales disappointed; UBS ‘buy’ maintained, target lifted to £76.60 from £76; RBC ‘sector perform’ maintained, £62 target
12:00 noon GMT: London indices in the black
The FTSE 100 is trading firmly higher at 10,730.92, up 36p, or 0.34%, with gains led by energy, defence and financial stocks.
The advance follows Wednesday’s UK budget and comes as investors digest corporate earnings and the Federal Reserve’s decision to leave interest rates unchanged.
Shell is the biggest riser so far, up 2.78%, after reporting a sharp increase in quarterly earnings and announcing a $5 billion share buyback.
The FTSE 250 has edged up 0.10%, or 25p, to 24,664.35, underperforming the FTSE 100 and signalling more muted gains among mid-cap stocks.
Nasdaq futures fell about 1% on Thursday as Alphabet’s results intensified concerns about the cost of its artificial intelligence investments, while investors awaited a key US inflation report a day after the Federal Reserve held interest rates steady.
Alphabet shares dropped 10.4% in pre-market trading, putting the Google parent on course to shed more than $400 billion in market value if the losses persist, after search advertising revenue disappointed and AI-related spending accelerated, increasing its cash outflows.
11.00am GMT: AIM outperforms UK small caps
The FTSE 100 gained 39 points to 10,733 and the FTSE 250 added 20 points to 24,659.
The AIM 100 rose 0.3% to 3,524, while the SmallCap fell 0.3% to 8,179.
In Europe, the Stoxx 600 gained 0.5%, the DAX 0.7% and the CAC 40 0.7% before the European Central Bank’s decision.
Small caps featured included:
ACG Metals Ltd (LSE:ACG, OTC:ACGAF) expecting a full commercial sulphide production at Gediktepe in the first quarter of 2027 and raised its oxide production forecast.
Talon Resources PLC (LSE:TAR, FRA:U09) reported a 8.75 metres grading 5.05 grams per tonne gold from its Eagle Lake project in Ontario.
Tertiary Minerals PLC (AIM:TYM, OTC:TTIRF, FRA:TMU) prepared to begin a four-hole, 1,000-metre diamond drilling programme at Mushima North in Zambia.
IXICO PLC (LSE:IXI, OTC:PHYOF, FRA:PYPB) presented research suggesting that reducing differences between MRI scanners does not always improve Huntington’s disease tracking.
10.00am GMT: Shell tops blue-chip risers
Shell led the FTSE 100 higher, rising 3.1% to 4,077p after third-quarter adjusted earnings nearly doubled to $10.8 billion.
The result exceeded the $10.3 billion expected by analysts as elevated oil and gas prices and record refining margins boosted profitability.
Operating cash flow reached US$21 billion, while Shell increased its quarterly share buyback programme from US$3 billion to US$5 billion.
The FTSE 100 was 39 points, or 0.4%, higher at 10,733 after reaching an intraday high of 10,759.
Elsewhere, 3i Group gained 2.9%, BAE Systems rose 2.6% and WPP added 2.2% after reiterating its annual guidance.
9.00 am GMT: Results drive sharp individual moves
The FTSE 100 extended its opening gain to 52 points, or 0.5%, reaching 10,746, while the FTSE 250 remained broadly flat at 24,651.
The stronger index concealed sharp results-driven declines among several large companies.
Shell led the risers with a 3% gain after reporting $10.8 billion in adjusted earnings and announcing a $5 billion share buyback.
BAE Systems rose 2.6% as defence stocks continued to benefit from the government’s spending plans, while 3i Group added 2.2%.
Haleon was the largest faller, plunging 13.3% after cutting its annual organic revenue growth forecast following weak North American demand.
Lloyds fell 3.5% after several quarterly measures missed expectations, while St James’s Place lost 3.5% as client inflows slowed.
8.15 am GMT: London opens higher
The FTSE 100 rose 36 points, or 0.3%, to 10,731 as investors continued to assess the UK Budget and overnight Federal Reserve decision.
Defence and aerospace shares led the market, with BAE Systems gaining 2.1%, Melrose Industries rising 2% and Babcock International adding 1.1%.
The gains followed confirmation that the government would fully fund its £15 billion Defence Investment Plan through public spending reprioritisation.
Shell climbed 1.9% after reporting third-quarter adjusted earnings of US$10.8 billion and announcing a US$5 billion share buyback programme.
Financial and industrial stocks also strengthened, with Aviva gaining 1.2%, while Halma and IMI advanced about 1%.
7.00 am GMT: London points higher after Budget
London stocks are expected to open higher after markets absorbed the UK Budget and the US Federal Reserve’s decision to leave interest rates unchanged.
FTSE 100 futures indicated a gain of around 0.3% after the blue-chip index closed eight points, or 0.1%, higher at 10,695 on Wednesday.
Chancellor John Healey increased the bank surcharge from 3% to 6% for 15 months, although the rise was smaller than some investors had feared, helping banking shares advance.
The Office for Budget Responsibility raised its UK growth forecast for 2026 to 1.2% but reduced its 2027 estimate to 1%, while inflation is expected to remain above the Bank of England’s target until 2028.
Wall Street finished modestly higher after the Federal Reserve voted 10 to two to maintain its benchmark rate at between 3.75% and 4%.
The S&P 500 added 0.3% to 7,744, the Nasdaq gained 0.3% to 26,550, and the Dow rose 0.2% to 52,475.
Asian trading was mixed, with Australia’s ASX 200 closing 0.4% higher at 8,885 and Japan advancing, while South Korea’s Kospi dropped 2.2% and Hong Kong traded close to flat.
Brent crude held near $115 a barrel, gold traded around $4,055 an ounce, and Bitcoin slipped below $80,000.
Sterling was little changed near $1.332, while investors await the European Central Bank’s policy decision and US economic growth data.
Shell, Lloyds Banking Group, Glencore, Haleon, St James’s Place and WPP are among the companies scheduled to update investors.