Alphabet records largest daily loss in company history

Alphabet shares fell 12.6%, representing the largest daily loss in the company's history and a $500 billion reduction in market value. Goldman Sachs described the move as a 6.5 sigma event, which is statistically expected once in 12 billion trading days under a normal distribution. The Nasdaq 100 lost 1.4%, the S&P 500 lost 0.3%, and the Russell 2000 gained 0.8%, indicating a rotation away from AI-heavy large caps. Over 400 of the 500 S&P 500 stocks rose, while the equal-weighted S&P 500 gained 1.2%. Non-AI stocks benefited from the rotation, with Norwegian Group up 13%, Carvana up 16%, and Skipotl up 9%. The 10-year US Treasury yield fell 8 basis points to 4.94% despite US Q3 GDP growth of 3.4%, the fastest in a year. Intel shares fell 20% after the company guided for maximum revenue of $16 billion, below analyst estimates of $17-18 billion, citing declining PC demand driven by rising memory costs and shrinking margins. Amazon's AWS division grew 39%, accelerating for the sixth consecutive quarter, with management forecasting over 40% growth in 2027 and 2028. However, Amazon's stock fell 6% after hours due to a $77 billion capital investment in data centers, resulting in a cash outflow exceeding $40 billion, and slightly lower-than-expected overall revenue and profit guidance. Samsung shares dropped 4% despite strong memory chip results because the company delayed shareholder payout plans until January, unlike competitor SK Hynix which announced new distributions. Other tech stocks including Reddit, Pinterest, and Roblox fell over 10% on weak earnings.