Major US stock indexes declined Thursday morning as disappointing earnings from tech giant Alphabet and software security firm Fortinet weighed heavily on investor sentiment. According to an Investor’s Business Daily report published on October 29, 2026, the Nasdaq composite sank 1.4% in early trade, while the Dow Jones Industrial Average lost 0.3% and the S&P 500 slipped 0.4%.
The broad market pullback unfolded against a backdrop of fresh economic data from Washington, complicating the outlook for monetary policy. While the small-cap Russell 2000 index bucked the downward trend to gain 0.7% as Treasury yields eased, high-growth technology shares faced sharp selling pressure following a wave of corporate financial reports.
Alphabet and Big Tech Divergence
Shares of Alphabet plunged 11% in premarket trading after the search giant reported third-quarter earnings that missed Wall Street targets. While cloud computing revenue growth met expectations, internet search advertising revenue missed estimates and decelerated for a second consecutive quarter, compounded by investment losses during the period.
In contrast, Microsoft shares climbed nearly 2% after the software leader handily beat analysts’ fiscal first-quarter earnings and sales projections. Meanwhile, Amazon awaited its own third-quarter results, with markets closely monitoring artificial intelligence spending plans and Amazon Web Services growth projections.
Economic Data Complicates Fed Outlook
Simultaneously, the Commerce Department released the Federal Reserve’s preferred inflation gauge, the core personal consumption expenditures price index. The core PCE rose 0.3% in September, bringing the annual increase to 3.1% and matching economist estimates.
The Commerce Department also reported that third-quarter gross domestic product came in at an annualized 3.4%, exceeding estimates for a 3.1% increase. The combination of stronger economic growth and persistent inflation arrives just after Federal Reserve policymakers opted against an immediate interest rate hike.
Software and Industrial Movers
Software security provider Fortinet suffered a steep decline, plunging 20% after investors expressed disappointment with third-quarter billings growth despite the company beating consensus earnings and revenue estimates. Other notable corporate decliners included Caterpillar, which dropped nearly 10%, and ServiceNow, which fell 19%.
Conversely, health care and energy components provided some cushion to broader blue-chip indexes. Chevron rallied more than 1%, and Amgen gains topped 3% following the opening bell, while Eli Lilly shares jumped nearly 5%.