US stocks extended losses on Thursday amid a deteriorating macroeconomic backdrop and fresh AI doubt on the latest earnings reports.
The S&P 500 and the Dow lost over 1%, while the Nasdaq 100 lost 2%.
Alphabet sank 7.5% after posting its Q2 results overnight.
The Google parent doubled its capital expenditure forecast to $205 billion this year, reigniting concerns of unsustainable spending in AI infrastructure.
Hyperscalers followed with Microsoft, Meta, Amazon, and Oracle falling between 5% and 3%.
Meanwhile, Tesla slipped 14% toward its lowest in one year after reporting lower profits despite a strong period for the overall electric vehicle sector.
Long-term yields surged as naval blockades for tankers in the Middle East grew tighter and initial jobless claims fell to a 57-year low, pressuring traditional economic sectors.
Goldman Sachs and Robinhood fell over 3%.
Comcast and RTX were both higher topping their estimates.