Alphabet Plunge Weighs on US Stocks

U.S. stocks fell as Alphabet’s weaker-than-expected results and heavy spending on AI infrastructure revived doubts about whether the investments will generate sufficient returns; its shares dropped roughly 12% to 13%. Technology stocks led the decline, with the Nasdaq underperforming, while Caterpillar also slid sharply after its outlook pointed to moderate sales growth. Investors weighed September inflation data, which was in line with expectations but remained a concern, against stronger-than-forecast third-quarter economic growth. The Federal Reserve had kept interest rates unchanged, and markets were also watching for results from Amazon and Intel. Gains in Eli Lilly and some other companies helped cushion the broader market decline.