A record-breaking drop for Alphabet, Google’s parent company, pulled US stocks…

A record-breaking drop for Alphabet, Google’s parent company, pulled US stocks lower on Thursday, October 29. The S&P 500, which tracks the 500 biggest US companies, fell 0.3% to 7,720.39, and the tech-heavy Nasdaq Composite dropped 1.4% to 26,184. The Dow Jones Industrial Average slipped 0.3% to 52,342. Most of the market actually rose: about 390 S&P 500 stocks gained, and the Russell 2000 index of smaller companies climbed 1% to a three-week high. A handful of giant tech stocks did the damage. Alphabet fell nearly 13%, its worst day since going public in 2004, wiping out roughly $480–500 billion in market value. It reported negative free cash flow (meaning it spent more cash than its business brought in) of about $9 billion, far worse than expected, while keeping its huge AI spending plans. That revived doubts about whether massive AI investments will pay off. Software companies ServiceNow and Fortinet also plunged after their earnings. On the brighter side, US inflation data came in softer or in line with expectations, which helped push Treasury yields lower, and healthcare stocks gained. After the closing bell, Amazon and Intel fell following their own results, though those after-hours moves aren’t final until Friday’s session.

Philippine stocks bounced back on Thursday. The PSEi, the index of the 30 biggest companies on the Philippine Stock Exchange, rose 0.92% to 5,705.58, climbing back above 5,700. The broader all shares index gained 0.38%. Analysts credited bargain hunting and positive cues from Wall Street after the Fed held rates steady. But trading was very thin at just ₱3.3 billion, which suggests investors aren’t fully convinced, and foreign investors were net sellers of about ₱100 million. The peso strengthened for a second straight day, gaining 17.5 centavos to close at ₱63.85 per dollar and moving back below ₱64. Traders pointed to three reasons: the Fed’s steady decision, slightly lower oil prices, and President Marcos’s pledge on Wednesday that the government will defend the peso “as hard as we possibly can” and has the reserves to do it. Analysts at OCBC said these strong official statements may slow the peso’s slide, but high oil prices and inflation risks remain.

Thursday showed that US news can help the Philippines even on a down day for Wall Street. The Fed’s decision to hold rates came after the PSE closed on Wednesday, so its effect showed up on Thursday. Traders read it as a calm, non-alarming “hold,” the US dollar eased, and the peso firmed. Softer US inflation data also pulled US Treasury yields lower. When US interest rates stop climbing, there is less pressure pulling money toward the dollar and away from currencies like the peso. But the relief is fragile. Markets still expect a possible Fed hike in December, oil remains near $115 a barrel, and Philippine inflation is above 7%. The government’s promise to defend the peso helped this week, but reserves are finite and can’t offset expensive oil forever. For OFW families, a slightly stronger peso means a bit fewer pesos per dollar sent home. For everyone else, it offers small relief on the cost of imported fuel and goods. Alphabet’s record drop is also a reminder that the AI boom, which has driven much of the global market this year, can quickly turn into a source of volatility for markets everywhere, including Asia.