Nasdaq Falls 1.3% as Alphabet Plunges 11.7% on Weak Q3 Revenue; Dow and S&P 500 Edge Lower

The Nasdaq dropped 335.37 points, or 1.3%, to 26,214.48 on Thursday, weighed down by an 11.7% plunge in Alphabet (GOOGL) shares to their lowest intraday level in nearly seven months. The Dow fell 127.90 points, or 0.2%, to 52,347.20, and the S&P 500 lost 23.63 points, or 0.2%, to 7,720.35. Alphabet slumped after reporting weaker-than-expected third-quarter revenue and negative free cash flow, with AJ Bell's Russ Mould citing weakness in core search advertising and heavy AI spending. Caterpillar (CAT) tumbled 7.7% despite beating earnings and revenue estimates. The Commerce Department said its PCE price index rose 0.5% in September, matching estimates, with the annual rate accelerating to 3.6% from 3.4%. Core PCE climbed 0.3% monthly and 3.1% annually, also in line with forecasts. A separate report showed third-quarter economic growth exceeded estimates. Eli Lilly (LLY) surged 6.7% on better-than-expected results, lifting pharmaceutical stocks. The ten-year Treasury yield fell 7.5 basis points to 4.970%.