
US economy grows at brisk 3.4% pace in third quarter on strong consumer spending and AI investment
By Marcus Chen
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NEW YORK (AP) — A potentially historic drop for Alphabet’s stock is dragging the U.S. market lower Thursday after the company behind Google and YouTube reported weaker growth for the summer than analysts expected. The report underscored worries about whether all its huge investments in artificial-intelligence technology will pay off.The S&P 500 fell 0.4% and was on track for its first loss in four days, while the Nasdaq composite tumbled 1.4%. Most of the rest of the stocks on Wall Street were rising, though, and the Dow Jones Industrial Average was down a more modest 0.3%, or 162 points, as of 10:15 a.m. Eastern time.Alphabet is one of the most influential stocks on Wall Street because it’s one of the largest, and its 12.5% drop was on track to be its worst since it began trading more than 20 years ago. It was under heavy pressure to at least meet analysts’ expectations for growth amid concerns about how much it’s spending to invest in AI.Alphabet said late Wednesday that it burned th