Wall Street closes lower affected by disappointing results from Alphabet

Wall Street closed lower due to disappointing results from Alphabet, raising concerns about AI profitability. The Nasdaq fell 1.38%, S&P500 dropped 0.30%, and Dow Jones decreased 0.25%. Alphabet's stock plummeted 12.64% after reporting quarterly results below expectations, leading to a market capitalization loss of $480 billion. This decline affected investor sentiment towards tech stocks, especially those linked to AI. Analysts noted that investors are questioning the economic model surrounding AI investments, seeking tangible proof of profit improvements. Meanwhile, Microsoft performed better with results exceeding expectations, while other sectors like cruise lines and pharmaceuticals saw positive reactions.