This update was written automatically with AI from market data and news wire reports, and published without review by a person.
Key Takeaways
- Alphabet (GOOGL) shares plummeted 13%, erasing approximately $489 billion in market value as tech volatility gripped the Nasdaq.
- The European Central Bank (ECB) held interest rates steady at 2.50% but warned that energy shocks related to the Iran war pose significant upside risks to inflation.
- Fortinet (FTNT) and ServiceNow (NOW) saw massive sell-offs, with Fortinet dropping 27% in its worst day on record and ServiceNow sinking 22%.
- Eli Lilly (LLY) defied the broader market slump, hitting a record high at the open after raising its financial outlook.
- The Euro fell to its lowest level since May 2025 as traders pared back bets on future rate hikes following the ECB's "meeting-by-meeting" guidance.
Tech Sector Faces Massive Liquidation
The technology sector experienced a brutal opening session on Thursday, led by a historic collapse in Alphabet (GOOGL). The search giant saw its shares dive 13%, a move set to wipe out nearly half a trillion dollars in shareholder wealth. This massive drag contributed to the Nasdaq falling 362.53 points, or 1.37%, shortly after the opening bell.
Software and cybersecurity firms were hit even harder by the wave of selling. Fortinet (FTNT) shares cratered 27%, marking the company's worst single-day performance on record. Meanwhile, ServiceNow (NOW) plunged 22%, representing its most significant intraday drop since 2016, as investors reassessed valuations across the enterprise software landscape.
ECB Holds Rates Amid Geopolitical Uncertainty
The European Central Bank maintained its deposit facility rate at 2.50% and the main refinancing rate at 2.65%, matching economist expectations. However, the Governing Council highlighted that it is "well positioned to navigate Iran war uncertainty," noting that increased energy shocks are likely to drive up headline inflation in the near term.
The central bank's statement remained cautious, emphasizing a "meeting-by-meeting approach" and clarifying that it is not pre-committed to any particular rate path. Following the announcement, the Euro tumbled to its lowest point against the dollar since May 2025, while the EUR/GBP pair hit its lowest level since April 2025. Traders responded by paring back future hike bets, now pricing in only 68bps of tightening by the end of 2027.
Mixed Performance in Broader Markets
Despite the tech-heavy Nasdaq's struggle, the S&P 500 and Dow Jones Industrial Average saw more moderate declines, falling 0.51% and 0.52% respectively. Market sentiment was partially supported by a standout performance from Eli Lilly (LLY). The pharmaceutical giant's shares surged to a record high at the open after the company raised its full-year outlook, providing a rare bright spot in a sea of red.
In the fixed income market, the French-German 10-year yield spread narrowed by 4bps to 150bps following the ECB decision. While underlying inflation is viewed as "broadly stable," the central bank warned that energy prices continue to pose downside risks to the growth outlook, even as wages have yet to show a material response to current economic pressures.
Automated market updates written with AI from market data and news wire reports, published without human review.