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Wall Street split in two at midday Thursday. Alphabet Inc. (NASDAQ:GOOGL) dragged the Nasdaq 100 lower after a costly quarter, while small caps and most other stocks moved higher.

Alphabet fell 11.8%, on track for its worst session on record. Third-quarter earnings came in at $2.12 per share, well below the $3.02 consensus, as capital spending more than doubled to $51.4 billion and free cash flow turned negative for a second straight quarter.

The slide erased about $470 billion of Alphabet’s market value by midday, even as Google Cloud revenue jumped 103% to $30.7 billion.

The economy gave investors a reason to look elsewhere.

Gross domestic product grew at a 3.4% annualized pace in the third quarter, above the 3.2% consensus and up from 2.2% in the second quarter. Meanwhile, the core personal consumption expenditures price index rose 3.1% from a year earlier in September, in line with estimates.

As a result, the Russell 2000 gained 1.2% while the Nasdaq 100 lost 1%. If those moves hold into the close, it would be the first session since July 2024 in which small caps rose more than 1% while the Nasdaq 100 fell more than 1%.

Breadth told the same story. In the Russell 1000, 764 stocks were higher and 256 lower, roughly three gainers for every loser.

Bonds Are Calm

The 10-year Treasury yield slipped 1 basis point to 4.99%, back below the 5% mark it held before the data. The 2-year yield fell 2 basis points to 4.67%, and the 30-year yield was flat at 5.33%.

On Wednesday, the Federal Reserve held rates at 3.75%-4.00%. Before Thursday’s data, traders priced an 83% probability of a 25-basis-point hike at the Dec. 9 meeting, according to the CME FedWatch tool.

Oil retreated. West Texas Intermediate crude fell 2.3% to $100.44 a barrel, and Brent lost 1.8% to $109.61. Gold futures eased 0.4% to $4,036 an ounce, while silver dropped 2.2% to $52.50. Bitcoin (CRYPTO: BTC) rose 0.5% to about $81,611.

The S&P 500 slipped 0.2% to 7,726, down 18 points.

The Dow Jones Industrial Average fell 0.2% to 52,363. Caterpillar Inc. (NYSE:CAT) weighed most, down 8.1% after third-quarter revenue missed forecasts. However, Merck & Co. Inc. (NYSE:MRK) rose 4.3% after lifting the midpoint of its 2026 guidance.

The Nasdaq 100 fell 1% to 29,502. Microsoft Corp. (NASDAQ:MSFT) slipped 1.6% despite earnings of $4.89 per share against a $4.72 consensus. In contrast, Meta Platforms Inc. (NASDAQ:META) gained 2.6% and Apple Inc. (NASDAQ:AAPL) rose 1.5%.

The Russell 2000 climbed 1.2% to 2,864.

Thursday’s Performance In Major US Indices

Index	Last	% Change	MTD	YTD
S&P 500	7,726.00	-0.23%	+0.97%	+12.86%
Dow Jones	52,362.62	-0.21%	+2.86%	+8.95%
Nasdaq 100	29,501.85	-1.04%	-2.98%	+16.84%
Russell 2000	2,863.62	+1.17%	+2.39%	+15.38%

According to the Benzinga Pro platform:

• The Vanguard S&P 500 ETF (NYSE:VOO) slipped 0.4%.
• The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) fell 0.5%.
• The Invesco QQQ Trust (NASDAQ:QQQ) dropped 1.3%.
• The iShares Russell 2000 ETF (NYSE:IWM) rallied 1.1%.

Drugmakers Lead as Software Sinks

Health care led the S&P 500’s sectors. The State Street Health Care Select Sector SPDR ETF (NYSE:XLV) rose 2%, lifted by strong drugmaker earnings. Eli Lilly and Co. (NYSE:LLY) gained 6.3% after raising its 2026 revenue outlook to $91 billion-$92 billion on third-quarter sales of $24.4 billion.

The iShares U.S. Pharmaceuticals ETF (NYSE:IHE) advanced 2.6%.

Communication services lagged. The State Street Communication Services Select Sector SPDR ETF (NYSE:XLC) fell 1.6%, as Alphabet is among its largest holdings.

Real estate, utilities and financials also rose between 1.4% and 1.8%, with Mastercard Inc. (NYSE:MA) up 4.3% after its quarterly report, while technology lost 1.1% and energy slipped 0.4%.

Software Takes a Hit

• The iShares Expanded Tech-Software Sector ETF (BATS:IGV) slid 4.1%.

• ServiceNow Inc. (NYSE:NOW) plunged 25.6%, heading for its worst day on record. Earnings of $1.00 per share missed the $1.02 estimate, and the company guided fourth-quarter growth in current remaining performance obligations to 18.5% in constant currency.

• Fortinet Inc. (NASDAQ:FTNT) tumbled 21.5%. Earnings of $0.91 per share beat the $0.86 consensus, but service revenue grew only 13% to $1.31 billion.

• Sprouts Farmers Market Inc. (NASDAQ:SFM) sank 22% after projecting a 1.7% decline in full-year comparable store sales.

• Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) dropped 17.3% despite beating estimates, as U.S. demand growth for its amyloidosis drugs slowed to $81 million from $129 million in the second quarter.

• Service Corp. International (NYSE:SCI) lost 12.3% after lowering its full-year adjusted earnings outlook to $3.94-$4.04 per share.

On the Upside

• ADT Inc. (NYSE:ADT) soared 33.5% after agreeing to be taken private by Thrive Holdings for $10 per share in cash, a 45.6% premium to its Oct. 27 close.

• Crocs Inc. (NASDAQ:CROX) jumped 25.7% after raising its full-year revenue and adjusted earnings outlook, as both the Crocs and HeyDude brands grew in the third quarter.

• Insmed Inc. (NASDAQ:INSM) climbed 17.9% after third-quarter revenue of $524.4 million topped estimates and it raised 2026 sales guidance for Brinsupri to $1.35 billion-$1.4 billion.

• Carvana Co. (NYSE:CVNA) rallied 15.1% after quarterly revenue topped $8 billion for the first time.

• Textron Inc. (NYSE:TXT) rose 14.6% after adjusted earnings climbed to $1.76 per share from $1.55 a year earlier and it raised its full-year earnings and cash flow outlook.

Thursday’s Russell 1000 Top Gainers

Name	% Change
ADT Inc.	+33.54%
Crocs Inc.	+25.66%
Insmed Inc.	+17.91%
Carvana Co.	+15.06%
Textron Inc.	+14.58%

Thursday’s Russell 1000 Top Losers

Name	% Change
ServiceNow Inc.	-25.59%
Sprouts Farmers Market Inc.	-21.95%
Fortinet Inc.	-21.49%
Alnylam Pharmaceuticals Inc.	-17.33%
Service Corp. International	-12.31%

What’s Next

Amazon.com Inc. (NASDAQ:AMZN) lost 2.7% ahead of its report, which is due after today’s market closes. Analysts expecting earnings of $1.97 per share.

Gilead Sciences Inc. (NASDAQ:GILD) also reports, with a consensus of $2.19 per share.

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