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Alphabet falls nearly 8% after downbeat profits, heavy AI spend

Indexes: Dow up 0.47%, S&P 500 up 0.19%, Nasdaq down 0.07%

(Updates as of mid afternoon)

By Abigail Summerville and Shashwat Chauhan

The S&P 500 and trademarketclassifieds.com the Dow rose on Wednesday, wiki.fablabbcn.org as financiers started to reject frustrating Alphabet revenues and weighed the possibility of future rates of interest cuts from the U.S. Federal Reserve.

Google-parent Alphabet dropped 7.3% after publishing downbeat cloud revenue development on Tuesday and earmarking a higher-than-expected $75 billion financial investment for its AI buildout this year.

AI-related stocks showed signs of recovery after being rocked recently following the skyrocketing popularity of a low-cost Chinese expert system model developed by start-up DeepSeek. Nvidia, which signed up one of the biggest losses, was up 3.3% on Wednesday.

"Ultimately, demand is not going away for AI even with the DeepSeek news. They ´ re all going to need to invest more money and that ´ s what the AI story has actually been. This is a fairly long cycle story," said Rob Haworth, senior investment strategist at U.S. Bank Asset Management.

Advanced Micro Devices, meanwhile, lost 8.2% after CEO Lisa Su said the business's current-quarter data center sales - a proxy for it-viking.ch its AI revenue - would fall about 7% from the previous quarter.

On the data front, financiers are expecting the January report, anticipated to be launched on Friday.

U.S. services sector activity all of a sudden slowed in January in the middle of cooling demand, assisting curb rate growth, a report from the Institute for Supply Management showed on Wednesday.

"There are some issues that the Fed might need to ease quicker, that the economy is slowing, but that ´ s really favorable news for the marketplaces since they ´ re looking for those Fed rate cuts," Haworth said.

The next Federal Open Markets Committee conference remains in March, and while just 16.5% of traders expect a rate cut then, a majority of traders anticipate a cut in June, according to CME's FedWatch Tool.

Richmond Fed president Thomas Barkin said the Fed was still leaning towards more rate cuts this year, however flagged uncertainty around the effect of new tariffs, utahsyardsale.com migration, guidelines and other efforts from U.S. President Donald Trump's administration.

At 2:00 p.m. ET (1900 GMT), the Dow Jones Industrial Average increased 207.53 points, or 0.47%, to 44,763.57, the S&P 500 gained 11.61 points, or 0.19%, to 6,049.49 and the Nasdaq Composite lost 12.91 points, or 0.07%, to 19,641.11.

Nine of the 11 S&P 500 sectors traded higher, with property and utility stocks leading the gains while interaction services tipped over 3%.

Shares of Apple slipped 1.2% as Bloomberg News reported that China's antitrust regulator was preparing for a possible examination of the iPhone maker.

Fiserv advanced 7.3% as the payments company beat quotes for fourth-quarter earnings, helped by strong need in its banking and payments processing system.

Markets also await advancements on the tariffs front after Trump said on Tuesday he remained in no rush to talk to Chinese President Xi Jinping to try to pacify a brand-new trade war in between the nations.

The Cboe Volatility Index, referred to as Wall Street's worry gauge, dropped 6.3% to 16.1 today.

In business movers, FMC Corp plunged 32% after the agrichemicals manufacturer projection first-quarter revenue listed below price quotes.

Johnson Controls jumped 12.5% as the structure services business called Joakim Weidemanis as primary executive officer and raised its 2025 profit forecast.

Advancing concerns surpassed decliners by a 2.62-to-1 ratio on the New York Stock Exchange, and by a 1.88-to-1 ratio on the Nasdaq.

The S&P 500 posted 31 brand-new 52-week highs and 12 new lows while the Nasdaq Composite taped 100 brand-new highs and 85 brand-new lows.

(Reporting by Abigail Summerville in New York, Shashwat Chauhan and Sukriti Gupta in Bengaluru; Editing by Pooja Desai, Devika Syamnath, Maju Samuel and Nia Williams)