New York:Shares of Google parent Alphabet experienced a significant drop early Thursday, impacting major indices due to disappointing results from the tech giant, despite solid US economic growth figures.
According to Bangladesh Sangbad Sangstha, Alphabet's shares fell nearly 13 percent following a report of lower-than-expected profit and a slowdown in its advertising business, all while maintaining substantial spending on artificial intelligence.
This occurred amid a backdrop of positive economic news, with the US economy growing 3.4 percent in the third quarter, surpassing analysts' expectations of 3.0 percent, driven by strong consumer spending.
Approximately 20 minutes into trading, the Dow Jones Industrial Average decreased by 0.2 percent to 52,346.66. Meanwhile, the S&P 500 declined by 0.4 percent to 7,711.73, and the tech-heavy Nasdaq Composite Index fell 1.5 percent to 26,149.27.
"The macro numbers definitely helped" to mitigate the decline in stocks, commented Adam Sarhan of 50 Park Investments, adding that the market remains positive about the economic growth and investor optimism.
In other company news, Microsoft saw a slight increase of 0.2 percent, Ford jumped 1.6 percent, while Caterpillar faced a significant drop of 8.6 percent.