Update: US Equity Indexes Drop as Alphabet's Quarterly Result Decimates Communication Services

11:50 AM EDT, 10/29/2026 (MT Newswires) -- (Updates with index/price moves, macroeconomic data, and company news from the first paragraph.) US equity indexes fell as a sell-off in Alphabet (GOOG, GOOGL) sank the communication services sector and weighed on mega-cap technology names, outweighing gains elsewhere. The S&P 500 and the Dow Jones Industrial Average each fell 0.2% to 7,725.9 and 52,347.4, respectively, while the Nasdaq Composite declined 1.1% to 26,257.3 after midday Wednesday. Communication services dived 5.7%, followed by declines in technology and consumer discretionary. All but three sectors rose, led by healthcare, financials, and real estate. Of the 10 top-performing stocks in a category with market capitalization exceeding $200 billion each, as many as eight were technology and communication services firms, according to data compiled by Finviz. Alphabet led decliners among the mega-caps, with shares down 12% after the technology giant's Q3 earnings unexpectedly declined from a year ago and revenue missed analyst expectations. The Google search engine owner was also among the worst performers on the S&P 500, the Nasdaq, and the Dow. The iShares PHLX Semiconductor Exchange Traded Fund, which has about $48.43 billion in assets under management, dropped 0.9%, reflecting selling in names related to the AI industry. In economic news, the personal consumption expenditures price index grew 0.5% in September, as expected, lifting the year-over-year rate to 3.6% from 3.4%, according to the Bureau of Economic Analysis. The price index increased by 0.3% month-over-month in August. The core PCE price index rose by 0.3%, as expected after a 0.3% gain in August. The year-over-year rate accelerated to 3.1% in September from 3.0% in the previous month. US Treasury yields fell, with the two-year yield down 7.5 basis points to 4.66%, and the 10-year rate dropping 5.6 basis points to 4.99%. The front-month West Texas Intermediate crude oil contract dropped 2.6% to $100.15 per barrel, and global benchmark Brent retreated 1.8% to $113.30 per barrel.