In a recent update, Alphabet has reported impressive fourth-quarter earnings, surpassing Wall Street expectations. The company’s cloud division stood out, showcasing a remarkable 48% year-over-year revenue increase. However, the tech giant revealed that it anticipates capital expenditures for 2026 to range between $175 billion and $185 billion. This projection, particularly at the high end, indicates a significant increase that could more than double last year’s spending. The announcement initially unsettled investors, leading to a decline in Alphabet’s shares by as much as 3% in after-hours trading, before the drop narrowed to just 0.39%.
Despite Alphabet’s mixed reception, Broadcom experienced a surge, with its shares rising over 6% in after-hours trading. Broadcom, which manufactures custom chips for Alphabet, managed to recover some lost ground following a 3.8% decline during regular trading, a trend seen across the tech sector. Other companies, including Advanced Micro Devices (AMD), took a heavier hit, with AMD’s shares plummeting 17.3% due to a disappointing first-quarter forecast. Overall, the tech-heavy Nasdaq Composite index fell by 1.51%, and the S&P 500 retreated by 0.51%, marking the fifth loss in six sessions. Conversely, the Dow Jones Industrial Average saw a slight increase of 0.53%, buoyed by stocks like Amgen and Honeywell.
Investor confidence in AI-related stocks has taken a hit, yet some market experts maintain a positive outlook on South Korean chipmakers. CNBC’s Jim Cramer praised Samsung Electronics and SK Hynix as “visionary” companies. Meanwhile, silver prices continue to face turbulence, experiencing a steep decline of up to 16%, effectively halting a brief recovery.
Across the Atlantic, BNP Paribas reported fourth-quarter earnings that exceeded market expectations, while Shell fell short of its profit targets. Monetary policy announcements are anticipated from both the European Central Bank and the Bank of England, with neither expected to implement changes to interest rates in the immediate future.
In other notable news, the U.S. has proposed a trade bloc focused on critical minerals, aiming to collaborate with allies on initiatives such as establishing a price floor and improving financing accessibility. Following a recent “Critical Minerals Ministerial,” the U.S. has signed bilateral agreements with 11 nations.
In China, the electric vehicle market appears to be experiencing a slowdown, with BYD reporting sales at their lowest in nearly two years. Major brands like Xiaomi and Xpeng also recorded significant decreases in sales from December to January.
On the diplomatic front, Chinese President Xi Jinping communicated with his U.S. counterpart in a bid to address Taiwan-related arms sales, emphasizing the need for caution.
Back in the U.S., major stock indexes took a downturn, with the S&P 500 continuing its slide as tech stocks weighed heavily on market performance. The Asia-Pacific region mirrored this downward trend, particularly with significant losses in South Korea’s Kospi and a bear market for the Hang Seng Tech Index.
Moreover, prominent financial figures, including BlackRock CEO Larry Fink and Reliance Industries Chairman Mukesh Ambani, have urged Indian investors to favor equities over gold. They argue that substantial domestic savings in gold and silver are largely unproductive, advocating for investment in the stock market to foster compounding growth.
