Alphabet’s Decline Causes Sharp Drop in Wall Street Stocks
A recent downturn in Alphabet, Inc., the parent company of Google, significantly influenced the US stock market, causing a notable decline on Wall Street. This drop not only affected Alphabet’s shares but also led to falls in other major indices, amidst rising concerns over the US job market.
Stock Market Reaction to Alphabet’s Decline
On a Thursday in early February 2026, Alphabet saw its stock plummet by 4.3%. This decline made it the largest drag on the market. Consequently, the S&P 500 index dropped by 1.2%, marking its sixth loss out of seven days since reaching an all-time high.
- Dow Jones Industrial Average: Down 606 points (1.2%)
- Nasdaq Composite: Decreased by 1.5%
Job Market Concerns
Compounding these market losses were disappointing reports regarding the US job market. A surge in unemployment claims indicated that the rate of layoffs could be increasing. In January alone, US employers announced a staggering 108,435 layoffs, the highest monthly figure since October 2025 and the worst January count since 2009.
In addition, a separate report indicated a significant decline in job openings. December recorded the fewest openings in over five years, further unsettling investors.
Bond Market Impressions
The dismal job reports caused Treasury yields to drop. The yield on the 10-year Treasury bond fell to 4.21%, down from 4.29% in the previous days.
Commodity Prices in Flux
Market fluctuations extended to commodities as well. Silver prices saw a dramatic decrease of 13.3%, while gold fell by 2.3% to $4,838.80 per ounce. Following a year of rising prices, these drops signaled a potential correction.
- Gold peaked near $5,600 before falling below $4,500.
- Bitcoin also experienced substantial declines, dropping below $68,000, significantly down from its October peak of over $124,000.
Impacts on Various Companies
Though many stocks struggled, some companies managed to perform well despite the turmoil. For instance:
- Broadcom’s shares increased by 3.7%, benefiting from heightened tech spending.
- McKesson’s stock surged by 16.8% following better-than-expected profits and an optimistic outlook.
In contrast, other firms like Qualcomm and Estee Lauder faced challenges that resulted in significant stock declines. Qualcomm’s shares fell by 7.2%, and Estee Lauder witnessed a 21.2% plunge, despite surpassing profit expectations.
Global Market Trends
The negative sentiment was not confined to the US. Stock markets across Europe and Asia also recorded losses. Notably:
- London’s FTSE 100: Down 0.9%
- France’s CAC 40: Decreased by 0.7%
- Germany’s DAX: Lost 0.9%
- South Korea’s Kospi: Tumbled by 3.9%
The interplay between Alphabet’s stock decline and broader economic indicators highlights the intricate relationship between corporate performance and the job market, fostering a cautious environment for investors.
