Alphabet Falls 2.7% After $80 Billion Stock Sale, Slowing S&P 500 Rally
Updated
Updated · The Associated Press · Jun 2
Alphabet Falls 2.7% After $80 Billion Stock Sale, Slowing S&P 500 Rally
3 articles · Updated · The Associated Press · Jun 2
Alphabet sank 2.7% after unveiling an $80 billion stock sale to help fund AI spending, weighing on U.S. equities and nudging the S&P 500 down 0.1% after its latest record high.
The Google parent said it could spend as much as $190 billion this year on equipment and other investments, with 2027 spending set to rise further, sharpening investor concerns that AI returns may not justify the outlay.
AI-linked suppliers still rallied: Hewlett Packard Enterprise jumped 25%, Marvell surged 24.2%, Broadcom gained 4.5% and Nvidia rose 2.6%, showing demand for data-center hardware remains strong.
Oil was calmer after Monday's rebound, with Brent near $94.96 a barrel, while the 10-year Treasury yield eased to 4.45% even after stronger-than-expected U.S. job openings data.
The pause comes after nine straight winning weeks for the S&P 500, a run fueled by solid earnings and hopes the United States and Iran can reopen the Strait of Hormuz.