US stock market big crash today: Why the Dow, S&P 500, and Nasdaq fell today - Gold, silver, and crypto all trade deep in the red

Core Viewpoint - The U.S. stock market experienced a significant sell-off, primarily driven by concerns over high capital expenditures in the technology sector, particularly related to artificial intelligence (AI) investments, which may not yield immediate returns [1][3][4]. Group 1: Market Performance - The Dow Jones Industrial Average fell by 385.81 points, a decline of 0.78%, closing at 49,115.49, while the S&P 500 dropped 1.08% to 6,808.63, and the Nasdaq Composite plunged 1.43% to 22,578.17 [1][4]. - The sell-off was broad but uneven, with technology stocks acting as the fulcrum, particularly in software, semiconductors, and AI-linked companies [3][4]. Group 2: Company-Specific Developments - Alphabet's earnings report was a key catalyst for the market's decline, with the company projecting capital expenditures of up to $185 billion for 2026, raising concerns about the sustainability of AI investments [7][8]. - Shares of Alphabet fell over 3%, reflecting investor anxiety that AI spending may outpace near-term cash returns [1][8]. - Qualcomm's shares plunged 9% after issuing a weaker-than-expected forecast due to a global memory shortage affecting device production [10]. Group 3: Investor Sentiment and Market Psychology - There has been a notable shift in investor psychology, where capital expenditure is no longer viewed as a bullish signal; instead, investors are demanding proof of monetization and margin expansion [6][18]. - The market is increasingly differentiating between AI "spenders" and "enablers," rewarding companies that demonstrate strong revenue growth while scrutinizing those with high capital expenditures [9][18]. Group 4: Macroeconomic Indicators - U.S. employers announced 108,435 layoffs in January, the highest figure since the global financial crisis, which shocked investors accustomed to a resilient labor market [12][19]. - Initial jobless claims rose to 231,000, exceeding expectations and indicating potential weakness in consumer spending [13][19]. Group 5: Commodity and Cryptocurrency Market Reactions - Commodities and cryptocurrencies reflected a risk-off sentiment, with WTI crude oil falling 2.32% to $63.63 and Bitcoin dropping 6.55% to $68,485, breaking below the $70,000 support level [15][17][19]. - Precious metals were also hit hard, with silver prices collapsing over 10% in a single session, highlighting the volatility in leveraged trades [16][19].