U.S. Stocks Drop Following In-Line PCE and Alphabet Earnings Slide

By EC Assets · Published 29 October 2026

United States equity markets opened lower on Thursday following the release of personal consumption expenditures price data that met consensus expectations. A steep post-earnings retreat in Alphabet shares pressured the broader technology sector and equity benchmarks. The search provider's latest quarterly figures sparked renewed market unease regarding artificial intelligence expenditures and search monetization. Alphabet shares fell 13%, positioning the company for its largest post-earnings retreat on record. The drop placed the stock on course for its worst single trading session in corporate history. A doubling of cloud computing revenue failed to appease Wall Street, as market participants focused on broader earnings disappointments. Investors demonstrated growing concern that artificial intelligence is impairing the company's ability to make money from online search queries. The quarterly miss represented the first visible sign that artificial intelligence tools are actively competing with the established search business. Ahead of the opening bell, United States stock index futures registered mixed results during European trading hours on Thursday. Dow Jones Industrial Average futures gained 0.37% to trade near 52,890. Concurrently, S&P 500 futures fell 0.38% to trade around 7,750, while Nasdaq 100 futures also showed weakness as technology sentiment deteriorated prior to the cash market open. In individual equity movements, Eli Lilly shares rallied after the drugmaker raised its sales guidance for the third time this year. The upward revision came as sales of its medication Zepbound climbed rapidly. The company continues to lead the market for prescription weight-loss treatments across the United States. The stock declines arrived alongside significant updates on domestic economic output and price pressures. Third-quarter United States gross domestic product increased by a better-than-expected 3.4%. The expansion represented the fastest rate of growth the economy has delivered in a year, displaying few signs of slowing down. Economic growth gained substantial momentum from the ongoing boom in artificial intelligence and strong discretionary spending by wealthier Americans. At the same time, inflation accelerated in September. These inflation and growth reports landed during an active week of macroeconomic data that could reshape narratives surrounding national growth and inflation. Along with gross domestic product and personal consumption expenditures data, the agenda includes Federal Open Market Committee meeting minutes, purchasing managers index figures, and the University of Michigan consumer sentiment survey. Upcoming catalysts on the macroeconomic calendar include purchasing managers index reports, consumer sentiment readings from the University of Michigan, and the release of minutes from the Federal Open Market Committee. This article is intended for informational purposes only. It does not constitute investment advice.