Alphabet (GOOGL) trades at 286.19, down 11.91% from a previous close of 324.89

Alphabet shares fell sharply at the open on Thursday, October 29, and stood at 286.19 at 10:26 a.m. in New York, down 11.91%. The slide pulled the Nasdaq 100 down 1.29% to 29428.75.

What happened

Alphabet (GOOGL) opened well below its previous close of 324.89. The stock was down 38.7 points in morning trading. One news report described the move as a potentially historic drop for the stock.

US stocks opened lower as Alphabet's results rekindled worries about soaring AI costs. The Nasdaq 100 was at 29428.75, against a previous close of 29813.16, a loss of 384.41 points.

Investors also assessed new inflation data. Core PCE prices rose 3.1% year on year in September, against a 3.1% estimate and after 3% previously. On a monthly basis, core PCE rose 0.3%, against a 0.3% estimate and the same 0.3% previously.

Why it matters

Alphabet is one of the largest companies in the Nasdaq 100, so a double-digit fall in its shares weighs on the index. The market reaction shows how closely investors track the cost of artificial intelligence investment.

The economic data released at 8:30 a.m. in New York showed a solid economy. GDP grew at an annualized 3.4% in the third quarter, against a 3.2% estimate and after 2.2% in the second quarter. Personal income rose 0.2% in September, against a 0.3% estimate and after 0.3% before. Personal spending rose 0.5%, against a 0.6% estimate and after 0.9% before.

The labor market data were also released. Initial jobless claims were 194K for the week to October 24, against a 199K estimate and after 195K the week before. Continuing claims were 1701K, against a 1720K estimate and after 1722K. The four-week average of claims was 196.75K, against a 197K estimate and after 198K. For investors, the session shows a split picture: firm macro data on one side and pressure on a major technology stock on the other.

What to watch next

Attention stays on how Alphabet shares settle after the opening drop and whether the pressure spreads to other technology names that spend heavily on AI. The Nasdaq 100 level at the close will show how far the Alphabet move weighed on the index.

Investors are also assessing the inflation data in light of the Federal Reserve's policy path, as one news report noted. No further events are scheduled in the pack for today.