US stock indices declined on Thursday, with the S&P 500 down 0.3%, the Nasdaq off 1.4%, and the Dow Jones Industrial Average lower by 135 points. The pullback came amid renewed doubts about the durability of the AI-driven rally, following disappointing results from several major cloud providers.
Alphabet sank 12.6% after missing both earnings and revenue estimates, weighing heavily on the communication services sector and contributing to broad weakness in technology shares. Amazon and Intel, which were scheduled to report after the closing bell, dropped 4.2% and 3.6%, respectively. Microsoft slipped 0.2%, despite delivering solid cloud-computing revenue.
In other corporate moves, Caterpillar fell 9.4% after projecting only “moderate” sales growth in the fourth quarter. By contrast, Eli Lilly climbed 6.5% after raising its revenue outlook, supported by robust demand for its weight-loss drugs, while Merck gained 3.7% after upgrading its guidance.
On the macroeconomic front, the US economy expanded at an annualized rate of 3.4% in the third quarter, outpacing forecasts. Meanwhile, PCE inflation picked up in September, underscoring persistent price pressures.
