ECB Holds Rates Steady as Alphabet Plunge Fans AI Jitters
European markets held firm as the European Central Bank paused rate hikes. Meanwhile, Wall Street opened lower after Alphabet shares tumbled over thirteen percent due to heavy AI spending.
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ALPHABET INC-CL A shares tumbled 13% Thursday morning following heavy AI-related cash burn, while European government bond and stock markets held steady as the European Central Bank kept its key rate at 2.5%. The drop in tech shares pushed the Nasdaq down 1.3% in early trading. For global investors, the stark divergence between steady European monetary policy and volatile U.S. tech valuations highlights mounting portfolio risks centered on artificial intelligence spending cycles.
