US stock indexes fell after Alphabet's weak quarterly report sent its shares down 13.2%. Reuters also reports US GDP growth above forecasts and a Fed hold on rates.
Ed Yardeni expects the AI investment boom to continue, though AI-linked shares may stay choppy amid financing, improving economics and strong chip demand.
AI stocksAlphabetSK HynixMeta PlatformsUS Treasuries
The average 30-year US mortgage rate slipped to 7.24%, extending its decline for a second week. Freddie Mac data, as reported by WSJ and Seeking Alpha.
The ECB kept rates unchanged and warned of rising inflation risks from energy costs. Christine Lagarde will step down on February 7, well ahead of schedule. Reported by Reuters.
Gold fell about 1% after US PCE inflation data strengthened expectations of a Fed rate increase in December, with silver, platinum and palladium also lower.
Third-quarter US GDP grew 3.4% annualized, beating estimates, as AI spending surged; Oxford Economics warns growth leans heavily on business investment.
The Fed held its target range at 3.75%–4.00%, though two policymakers dissented in favor of a hike. Bitcoin, Ethereum and XRP fell over the day, Brave New Coin reports.