Dow Jones falls 0.3% as Alphabet and Caterpillar weigh on U.S. market
Published on 10/29/2026 at 18:42 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSDow Jones under midday pressure
- The Dow Jones Industrial Average was down 0.3% at 52,304.38 points in a midday reading on October 29, 2026.
- Alphabet's disappointing results and Caterpillar's earnings reaction weighed on the blue-chip index.
- Stronger-than-expected third-quarter GDP and firmer inflation data kept expectations for a possible December rate hike in focus.
The Dow Jones Industrial Average remained under pressure during Thursday's U.S. session as investors weighed disappointing results from Alphabet against stronger economic growth and renewed inflation concerns. At 17:56 Berlin time, equivalent to 11:56 a.m. EDT, Agence France-Presse reported the index at 52,304.38 points, down 0.3%. The U.S. market was still in session, so the reading was not a closing level.
Earnings put pressure on the index
Alphabet shares fell sharply after the Google parent reported weaker-than-expected third-quarter adjusted earnings and revenue while maintaining heavy artificial-intelligence investment. The company also posted negative free cash flow of 9.07 billion U.S. dollars and retained its full-year capital-expenditure forecast of 195 billion to 205 billion U.S. dollars, according to CNBC.
Caterpillar also weighed on the Dow. The industrial equipment maker reported better-than-expected third-quarter earnings and revenue, but its construction-industries sales came in slightly below estimates. Investors also reacted negatively to the company's unchanged annual revenue-growth outlook, according to CNBC. The contrasting reactions showed how high expectations for artificial-intelligence infrastructure spending have raised the bar for companies linked to that investment cycle.
Growth and inflation shape rate bets
Economic data provided a mixed backdrop. U.S. gross domestic product grew at an annualized 3.4% in the third quarter, ahead of expectations and above the 2.2% pace recorded in the second quarter. The expansion was supported by consumer spending and business investment, including spending associated with the artificial-intelligence build-out.
At the same time, the September personal-consumption-expenditures price index rose 3.6% year over year, while core PCE increased 3.1%. The monthly core reading rose 0.3%, in line with expectations. The figures kept inflation and the prospect of another Federal Reserve rate increase later in the year central to market positioning. The central bank had left its policy rate unchanged at 3.75% to 4% on Wednesday.
What investors are watching
The Dow's decline was less pronounced than the technology-heavy Nasdaq's fall, reflecting the differing impact of the earnings news across sectors. Investors continued to monitor whether elevated AI spending can translate into durable cash flows, while also assessing whether resilient economic activity will leave the Federal Reserve less room to ease policy.
With the U.S. session still underway, the intraday reading remains subject to change before the official close. Further earnings, including Amazon's results after the bell, were expected to provide another test for technology and growth-stock valuations. More index coverage is available on this Dow Jones topic page.
