S&P 500 closes at 7,720.39 as Alphabet sell-off hits tech
Published on 10/29/2026 at 22:51 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSWhat Drove the S&P 500 Lower
- The S&P 500 closed at 7,720.39 on October 29, 2026, down 23.59 points, or 0.30 percent.
- Alphabet's record decline after weaker-than-expected growth and concerns about AI investment returns weighed heavily on the benchmark.
- Strong US third-quarter GDP and higher September inflation data added to the market's policy debate, while Treasury yields fell.
The S&P 500 closed at 7,720.39 on Thursday, October 29, 2026, down 23.59 points or 0.30 percent. The decline was the index's first in four sessions, according to the Associated Press via Yahoo Finance.
Alphabet becomes the main drag
Alphabet was the central source of pressure on the benchmark after the Google parent reported weaker summer growth than analysts expected. Its shares suffered their worst daily decline since the company began trading, reviving concerns about whether the technology sector's large artificial-intelligence investments will generate sufficient returns. The sell-off also weighed on other technology and software stocks.
The Nasdaq Composite fell 1.4 percent, a substantially larger decline than the S&P 500. The Associated Press said the broader market's loss came even though the majority of stocks in the index and across Wall Street rose. Treasury yields also fell during the session.
Economic data keep policy debate active
Investors also assessed fresh US economic data. A Yahoo Finance market report said third-quarter GDP grew at a 3.4 percent annualized rate in its first estimate, above the 3.1 percent expectation cited in the report. September personal-consumption expenditures inflation rose 3.6 percent year over year, while core PCE increased 3.1 percent.
The data arrived a day after the Federal Reserve held its policy rate unchanged, with two policymakers favoring a rate increase. That combination leaves economic growth, inflation and the path of future policy as important considerations for equity valuations, particularly in high-growth technology names.
What the close indicates
The session showed a sharp divergence within US equities: a concentrated loss in a major technology constituent and related growth shares pulled the capitalization-weighted S&P 500 lower, while broader participation limited the index's decline. The move is therefore best read as a technology-led setback rather than a uniform retreat across all index constituents.
For further S&P 500 coverage, see the S&P 500 topic page.
