Nasdaq falls over 1% as Alphabet AI spending worries investors
In short
US stocks fell, and the Nasdaq Composite dropped more than 1%.
Alphabet’s weak ad results, bad quarterly updates from Fortinet and ServiceNow, and worries about AI spending helped drag shares lower. Eli Lilly rose on strong forecasts, while Caterpillar fell after leaving its sales outlook unchanged.
What the reporting says
US stocks saw the Nasdaq Composite drop over 1% after Alphabet reported disappointing advertising results, according to an Economic Times Markets summary. The decline was worsened by weaker software shares after Fortinet and ServiceNow posted unfavorable quarterly results, while inflation data and AI spending concerns also weighed on sentiment. Eli Lilly rose on strong revenue forecasts, and Caterpillar fell after keeping its annual sales outlook unchanged.
Why it matters
The Nasdaq Composite dropped over 1% as investors reacted to Alphabet’s disappointing advertising results, weaker software earnings from Fortinet and ServiceNow, and renewed concerns about AI spending and inflation data. The move hit software shares in particular, while Eli Lilly gained on stronger revenue forecasts and Caterpillar slipped after leaving its annual sales forecast unchanged. The reporting does not give a precise index close or any broader market outlook.