Major equity benchmarks came under pressure Thursday after Alphabet’s third-quarter results missed analyst expectations, driving the Google and YouTube owner down 9% in early trading and fueling concerns about the future of AI. Caterpillar, another AI-adjacent company because of its data-center investments, also tumbled 9% after revenue in its construction industries business came in slightly below estimates. Volatility increased, with the Cboe Volatility Index reaching 22.31, its highest level since June, but Citigroup reiterated its year-end S&P 500 target of 8,100, 4.6% above Wednesday’s close. A potential Federal Reserve rate hike in December complicates the path for stocks, while Wells Fargo expects the U.S. economy to remain resilient through 2027, supported by consumer spending, market liquidity and strong corporate earnings.
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