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Source: Newsmaker.id
U.S. stock markets faced renewed pressure during Thursday’s trading session (October 29, 2026), as earnings reports from several technology companies fueled concerns regarding the sustainability of investments in artificial intelligence (AI). The S&P 500 index fell 0.3%, the Nasdaq Composite dropped 1.4%, and the Dow Jones Industrial Average lost approximately 135 points. The most significant downward pressure came from Alphabet, whose shares plummeted 12.6% after the company’s earnings and revenue missed market expectations, dragging both the communication services and technology sectors into the red. Amazon shares also declined by 4.2%, Intel fell 3.6%, and Microsoft saw a 0.2% correction, despite reporting solid sales performance in its cloud computing services.
The weakness on Wall Street reflects growing investor caution regarding the massive spending by tech companies on AI infrastructure development. The market has begun to question whether these substantial investments will be capable of generating the expected profit growth. Caterpillar shares also faced pressure, sliding 9.4% after the company projected only moderate sales growth for the fourth quarter. However, not all sectors experienced a downturn; Eli Lilly shares surged 6.5% after the company raised its revenue forecast, driven by strong demand for its weight-loss drugs, while Merck rose 3.7% following an upward revision to its performance outlook. These movements highlight a shift in investor interest toward companies with more compelling earnings prospects.
On the economic front, U.S. gross domestic product (GDP) grew by 3.4% in the third quarter—surpassing market expectations and indicating that economic activity remains relatively robust. Nevertheless, an acceleration in the Personal Consumption Expenditures (PCE) price index—a key inflation gauge—for September has reignited concerns regarding the future direction of the Federal Reserve’s monetary policy. The combination of solid economic growth and persistently high inflation is likely to reinforce expectations that the Federal Reserve will maintain a tight interest-rate policy for longer. This creates an additional challenge for technology stocks, which are sensitive to both funding costs and valuations. Investors are now closely monitoring upcoming earnings reports from major companies, as well as developments in U.S. inflation, to gauge whether the pressure on Wall Street will persist.
Source: Newsmaker.id