Market & financial news desk
U.S. equities traded broadly lower Thursday morning. The Nasdaq Composite fell more than 400 points, or 1.58%, to 25,286. The Dow Jones Industrial Average declined 0.95% to 51,720, and the S&P 500 dropped 0.86% to 7,434.
The Sector Split
The damage concentrated in specific corners. Communication services fell 4.4%, weighed by Alphabet Inc. (GOOGL), which dropped more than 6% after lifting its capital spending guidance. Automobiles and auto parts fell over 8%, led by Tesla's post-earnings decline. Industrials moved the other way, gaining 2.2%.
The Common Thread
A pattern connected the largest decliners: companies disclosing heavier forward spending were sold, regardless of whether their reported quarters were strong. Alphabet beat on revenue and raised capital expenditure guidance to $195–$205 billion. Tesla posted record deliveries and revenue while operating income fell 57% on AI and robotics investment. Both were punished.
What Rose Instead
The gainers tell the inverse story. Lockheed Martin advanced on a record backlog of contracted work. Cleveland-Cliffs rose on a sole-source government contract. Investors on this particular day rewarded visible, contracted revenue over promised future returns — a rotation worth noting as earnings season continues.