Alphabet falls nearly 8% after downbeat revenues, heavy AI spend

Indexes: Dow up 0.47%, S&P 500 up 0.19%, Nasdaq down 0.07%

(Updates as of mid afternoon)

By Abigail Summerville and Shashwat Chauhan

The S&P 500 and the Dow increased on Wednesday, akropolistravel.com as financiers started to reject disappointing Alphabet profits and weighed the possibility of future interest rate cuts from the U.S. Federal Reserve.

Google-parent Alphabet dropped 7.3% after posting downbeat cloud income growth on Tuesday and allocating a higher-than-expected $75 billion financial investment for its AI buildout this year.

AI-related stocks showed indications of recovery after being rocked recently following the skyrocketing popularity of a low-priced Chinese expert system design established by startup DeepSeek. Nvidia, which signed up one of the greatest losses, videochatforum.ro was up 3.3% on Wednesday.

"Ultimately, demand is not going away for AI even with the DeepSeek news. They ´ re all going to need to invest more cash and that ´ s what the AI story has been. This is a fairly long cycle story," said Rob Haworth, senior investment strategist at U.S. Bank Asset Management.

Advanced Micro Devices, meanwhile, lost 8.2% after CEO Lisa Su said the business's current-quarter information center sales - a proxy for its AI revenue - would fall about 7% from the previous quarter.

On the information front, financiers are expecting the January nonfarm payrolls report, anticipated to be released on Friday.

U.S. services sector activity all of a sudden slowed in January amidst cooling demand, helping curb cost growth, oke.zone a report from the Institute for Supply Management showed on Wednesday.

"There are some issues that the Fed may need to relieve quicker, that the economy is slowing, but that ´ s in fact favorable news for the markets due to the fact that they ´ re trying to find those Fed rate cuts," Haworth said.

The next Federal Open Markets Committee conference remains in March, championsleage.review and while just 16.5% of traders expect a rate cut then, a bulk of traders expect a cut in June, according to CME's FedWatch Tool.

Richmond Fed president Thomas Barkin said the Fed was still leaning towards more rate cuts this year, however flagged uncertainty around the effect of new tariffs, immigration, guidelines and other efforts from U.S. President Donald Trump's administration.

At 2:00 p.m. ET (1900 GMT), the Dow Jones Industrial Average rose 207.53 points, or forum.altaycoins.com 0.47%, to 44,763.57, the S&P 500 gained 11.61 points, or 0.19%, to 6,049.49 and surgiteams.com the Nasdaq Composite lost 12.91 points, or 0.07%, to 19,641.11.

Nine of the 11 S&P 500 sectors traded greater, with realty and utility stocks leading the gains while interaction services tipped over 3%.

Shares of Apple slipped 1.2% as Bloomberg News reported that China's antitrust regulator was getting ready for a possible examination of the iPhone maker.

Fiserv advanced 7.3% as the payments company beat quotes for fourth-quarter earnings, helped by strong demand in its banking and payments processing unit.

Markets likewise await advancements on the tariffs front after Trump said on Tuesday he remained in no hurry to speak with Chinese President Xi Jinping to attempt to pacify a brand-new trade war between the nations.

The Cboe Volatility Index, called Wall Street's fear gauge, dropped 6.3% to 16.1 today.

In business movers, FMC Corp plunged 32% after the agrichemicals producer projection first-quarter earnings below estimates.

Johnson Controls leapt 12.5% as the building solutions business called Joakim Weidemanis as ceo and raised its 2025 earnings projection.

Advancing issues outnumbered decliners by a 2.62-to-1 ratio on the New York Stock Exchange, and trademarketclassifieds.com by a 1.88-to-1 ratio on the Nasdaq.

The S&P 500 published 31 brand-new 52-week highs and 12 new lows while the Nasdaq Composite recorded 100 brand-new highs and 85 new lows.

(Reporting by Abigail Summerville in New York City, Shashwat Chauhan and Sukriti Gupta in Bengaluru; Editing by Pooja Desai, Devika Syamnath, Maju Samuel and Nia Williams)