Alphabet Capex Shock Rattles Wall Street, Gold Plunges

Alphabet’s capex target spooked markets, knocking its shares lower after hours and dragging broader Wall Street sentiment down. Nvidia edged higher, but Asia’s tech supply chain sold off and US futures lost traction as risk aversion spread. Precious metals slid sharply, with silver suffering an unusually steep fall and gold dropping well below recent highs. European markets are set for a softer open ahead of central bank decisions.

Equities

The FTSE 100 closed at a record level on Wednesday, finishing up at 10,402, supported by strong gains in healthcare and insurance shares. The index ended the session higher as investors positioned ahead of the Bank of England’s policy decision due later today. The more domestically focused FTSE 250 also closed modestly higher.

Healthcare stocks led the advance. Shares in GSK closed sharply higher on Wednesday, reaching their highest level in more than two decades after the company reported upbeat fourth-quarter earnings. Management said the next phase of growth would focus on faster research and development, programmes aimed at reshaping standards of care, and targeted acquisitions to lift sales growth. In the insurance sector, Beazley shares surged after the market close agreed terms on a sweetened £8bn takeover proposal from Zurich Insurance, lifting the wider non-life insurance sector.

UK-listed technology and media names remained under pressure. Shares in RELX closed lower on Wednesday, extending losses from earlier in the week. Softcat fell to a two-year low during the session, while WPP closed at its weakest level since the late 1990s.

In the US, major indices ended mixed on Wednesday. The S&P 500 closed lower at 6,882, while the Nasdaq Composite finished sharply down at 22,904. The Dow Jones Industrial Average closed higher, supported by strength in energy and industrial shares.

Technology stocks weighed heavily on Wall Street. Advanced Micro Devices shares closed sharply lower on Wednesday after the chipmaker issued a weaker-than-expected revenue forecast, pointing to tougher competition in artificial intelligence hardware. Nvidia also ended the session lower, dragging the wider semiconductor sector down. Palantir fell heavily, reversing gains from the previous day.

Elsewhere, Alphabet shares closed lower ahead of its earnings release, before rebounding in after-hours trading after management outlined plans to accelerate spending on AI infrastructure. Super Micro Computer jumped late on Wednesday after lifting its annual revenue outlook, while Eli Lilly closed significantly higher after forecasting 2026 profit above market expectations. Data released earlier showed US private payroll growth slowed in January, while the official jobs report has been delayed following last week’s partial government shutdown.

Forex & Commodities

Early on Thursday, the US dollar firmed as markets turned cautious ahead of a cluster of central bank decisions. The dollar index rose to 97.76 during Asian trading, extending gains from the previous session. Against the Japanese yen, the dollar was steady at 156.8 following solid demand at a long-dated Japanese government bond auction. The dollar was little changed versus the offshore yuan at 6.944 after a phone call between Donald Trump and Xi Jinping that touched on trade and security. Sterling edged lower ahead of the Bank of England decision, trading at $1.362, while the euro slipped to $1.179 before the European Central Bank announcement later today.

Equity markets were weaker, with US technology stocks leading declines. The Nasdaq Composite closed lower for a second consecutive session, marking its sharpest two-day fall since October. Shares in Alphabet fell late on Wednesday after the company outlined higher spending plans, while software stocks broadly retreated as investors reassessed earnings and costs linked to generative artificial intelligence.

Precious metals sold off sharply early this morning. Spot silver dropped to $73.41 after heavy selling, while spot gold retreated to around $5,480 after briefly approaching recent highs earlier in the session. The pullback followed a period of extreme volatility, with traders cutting positions as the dollar strengthened and geopolitical tensions eased.

Oil prices also fell overnight. Brent crude traded at $68.15 per barrel and US crude at $63.90 after Washington and Tehran confirmed talks would take place in Oman on Friday. The move reversed part of Wednesday’s rally, which had been driven by concerns the talks might collapse. Analysts noted that reduced supply fears trimmed the risk premium built into prices. Copper prices moved lower as well, weighed down by rising inventories, while iron ore slipped amid elevated stockpiles. By contrast, soybeans rose late on Wednesday on expectations of renewed Chinese buying.z