S&P Off 0.6%, Nasdaq 2.1% as Oil Jumps, Alphabet Drops
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- S&P 500 fell 0.6% and the Nasdaq dropped 2.1% for a second straight weekly loss, driven by Middle East tensions, AI spending scrutiny, and mixed earnings across sectors.
- Oil prices spiked for a third consecutive week — WTI up 8%, Brent up 10% — pushed above $100/barrel by Trump's threats against Iranian bridges and power plants and Houthi attacks on Saudi tankers in the Red Sea.
- Alphabet shares fell 7% Thursday despite beating estimates, as investors focused on the company's $195–205 billion capex outlook and negative free cash flow.
- Intel posted its strongest quarterly revenue growth since 2011 with a 59% jump in data center revenue, but shares closed down nearly 8% Friday and finished 3% lower for the week after no major foundry customer was announced.
- GE Vernova shares fell roughly 4.1% for the week despite 88% order growth, as investors fixated on the EPS miss rather than the demand signal from AI data center businesses.
- Eli Lilly shares rose 1.4% on retatrutide data showing greater weight loss than Zepbound and Wegovy; the company plans to file the drug as a biologic, which provides stronger IP protections and exempts it from Medicare price negotiations.
- Johnson & Johnson shares climbed 4.1% after the FDA approved its Ottava robotic surgery system months earlier than expected, giving the company a foothold in a market dominated by Intuitive Surgical.
Why it matters: Alphabet's 7% slide on a $195–205B capex outlook shows investors no longer reward AI spending without a clear path to returns. With Brent above $100 and Fed rate-hike odds jumping from 13% to 35% in a week, inflation pressure is building ahead of next week's Fed meeting.
