Wall Street ends lower as Alphabet revenue miss revives AI capex jitters
By Stephen Culp and Shashwat Chauhan
Thu October 29, 2026
It’s the same old story we’ve heard many times before. One day AI companies turn in good reports and the whole market forgets all their fears and buy like crazy. Another day, a bad report resurfaces all those debt fears and sends everyone to the exits. Today’s disappointing Alphabet report brought concerns over the huge AI debt loads to the front burner again, sending all three indexes straight down into 3-digit losses. Just as yesterday the indexes all gained about ¼%, today the Dow and S&P lost about that much. But the Nasdaq took the real drubbing losing almost 1.4%, sending the overall chip index down the same 1.4%.
A boatload of economic data showed Q3 GDP grew faster than expected but this was balanced by continuing rising prices feeding the fears of broader systemic inflation. Just over half of the S&P has now reported with 81% beating expectations. Q3 earnings growth is still projected at 31%. And with small caps doing so well, there’s also the optimist in the crowd. “A risk-off day like this, with the small caps outperforming, is a good sign. It means there are plenty of other places to go with your money outside of the AI trade.” At 17.05 billion, volume was right in line with the 4-week average of 17.09 billion.
DJ: 52,475.10 +97.53 NAS: 26,549.85
+72.04 S&P: 7,743.98
+21.38 10/28
DJ: 52,342.56 -132.54 NAS: 26,184.72
-356.13 S&P: 7,720.39
-23.59 10/29
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