S&P 500 falls 0.38% as Alphabet earnings revive AI concerns
Published on 10/29/2026 at 18:44 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSS&P 500 loses ground in afternoon trade
- The S&P 500 stood at 7,714.42 points at 1:05 p.m. Eastern Time on October 29, down 0.38%.
- Alphabet's earnings and renewed concerns about AI spending weighed on technology shares, while healthcare stocks provided support.
- U.S. third-quarter GDP grew at a 3.4% annualized rate, while September core PCE inflation rose 0.3% month over month.
The S&P 500 was trading lower in the second half of the U.S. session on Thursday, October 29. MarketWatch reported a level of 7,714.42 points at 1:05 p.m. Eastern Time, equivalent to 7:05 p.m. Berlin time, with the index down 0.38% on the day. The session remained open, so the figure is an intraday reading rather than a closing level.
The move followed a difficult start for large technology stocks. CNBC reported that Alphabet fell after its third-quarter results missed expectations for adjusted earnings per share and revenue. The company also reported negative free cash flow of USD 9.07 billion and maintained a full-year capital expenditure forecast of USD 195 billion to USD 205 billion. The reaction added to scrutiny of whether the large investments required for artificial intelligence will generate sufficient returns.
Healthcare offers a partial counterweight
The pressure was concentrated in parts of technology and communication services rather than across the entire market. CNBC reported that the S&P 500 healthcare sector reached a new all-time high in early trading, helped by strong results from Eli Lilly and Merck. Eli Lilly also raised its full-year revenue outlook, according to the report. The contrast underlined the market's continued sensitivity to earnings quality and sector-specific guidance during the third-quarter reporting season.
Growth is strong, inflation remains relevant
Economic data delivered a mixed policy signal. The U.S. economy grew at a 3.4% annualized rate in the third quarter, above the 3.1% consensus cited by Charles Schwab. The same source reported that September headline personal consumption expenditures inflation rose 0.5% month over month and 3.6% year over year, while core PCE increased 0.3% month over month and 3.1% year over year. Stronger growth supports corporate activity, but persistent inflation keeps future Federal Reserve decisions central to the valuation debate.
The S&P 500 had closed at 7,743.98 points on Wednesday, according to the previous S&P 500 coverage. The latest decline therefore represented a reversal from the prior session's advance, while the main new market events were the earnings reaction and the economic releases. Investors should distinguish this intraday indication from the official closing level that will only be available after the U.S. session ends.
