Alphabet’s 3.5% decline weighs on indices after leadership shakeup and doubts over Gemini’s competitiveness emerge.
US equities closed lower as Alphabet’s ongoing struggles offset gains from asset managers tied to $500 billion in AI capital raises. The S&P 500 fell 0.3%, while the Nasdaq declined 0.6%, led by Alphabet’s 3.5% drop amid concerns over its AI division’s leadership changes and cultural challenges.
The decline follows a week of market volatility driven by earnings and AI-related developments. While asset managers like Apollo and KKR benefited from AI fundraising, broader sentiment remained cautious. Oil prices rose 1.6% despite initial sell-offs, closing higher for the day.
Investors remain wary of Alphabet’s ability to close the gap with competitors, despite the company announcing 1 billion users for Gemini. The Russell 2000 bucked the trend, posting a 0.4% gain.