Alphabet shares drop 10% after quarterly revenue misses expectations

Alphabet Inc. shares fell approximately 10 percent in after-hours trading Thursday after the Google parent company reported quarterly revenues that disappointed investors. The results raised questions about whether the California-based firm can generate sufficient sales to justify its massive investments in artificial intelligence. This earnings miss contributed to a mixed session in Asian markets and U.S. futures, as traders digested the performance of major technology companies.

The Federal Reserve held interest rates steady during its policy meeting that concluded Wednesday. While the decision was anticipated, two officials voted in favor of a rate increase. Analysts noted that a hike in December is likely because inflation remains too high. Markets are now watching the European Central Bank, which meets later Thursday, and the Bank of Japan, which is expected to maintain its current policy stance on Friday.

Energy prices declined as U.S. officials warned that renewed military action against Iran could occur after the November 3 midterm elections. Brent crude oil, the international standard, dropped 1.2 percent to $110.32 per barrel. That price remains well above the roughly $72 per barrel level seen before the Iran war began in late February. Benchmark U.S. crude oil fell 1.3 percent to $101.46 per barrel.

Asian equity markets showed divergent trends. South Korea's Kospi index lost 2.2 percent to 5,880.25, dragged down by Samsung Electronics. The chipmaker's shares sank 5.4 percent despite strong quarterly results, as its shareholder return policy disappointed some investors. In contrast, memory chipmaker SK Hynix rose 1.6 percent after its shares surged 10.9 percent the previous day on better-than-expected earnings. Japan's Nikkei 225 edged up 0.2 percent to 64,073.17, while SoftBank Group shares fell 0.5 percent.

Other Asian indices also moved in opposite directions. Taiwan's Taiex index declined 1.9 percent, and the Shanghai Composite index shed 0.9 percent to 3,647.12. Hong Kong's Hang Seng index edged less than 0.1 percent higher to 23,101.86. Australia's S&P/ASX 200 gained 0.5 percent to 8,888.50. The mixed sentiment reflects investor uncertainty as the global artificial intelligence boom faces its first major earnings test.

In the bond market, the yield on the 10-year U.S. Treasury eased to below 5.00 percent after briefly jumping to around 5.04 percent Wednesday. The two-year Treasury yield steadied at 4.68 percent, down from over 4.77 percent on Wednesday. Currency markets showed minor shifts, with the U.S. dollar falling to 157.72 Japanese yen from 157.84. The euro traded at $1.1146, down from $1.1154.

Microsoft shares provided a contrast to Alphabet's decline, gaining nearly 3 percent in after-hours trading on better-than-expected earnings. On Wednesday, Wall Street's benchmark S&P 500 index added 0.3 percent, and the Dow Jones Industrial Average gained 0.2 percent. The technology-heavy Nasdaq composite climbed 0.3 percent on Wednesday. These moves indicate that while Alphabet's report shook confidence, other major tech firms are still meeting or exceeding investor expectations.