US stocks turned lower on Thursday as investors awaited Amazon earnings, assessed Alphabet’s big AI spending plans, and digested jobs data signaling fresh weakness in the labor market. The S&P 500 and Nasdaq shed 0.9% and 1.3%, respectively, while the Dow edged 0.5% lower. Weekly jobless claims rose more than expected, with January marking the worst month for layoffs since 2009.

The market is reeling from a trillion-dollar tech wipeout as worries about AI disruption to established software players lead to a sell-off. Wall Street is digesting corporate earnings, with Alphabet shares sliding over 5% after announcing a significant ramp-up in AI investment. Attention now turns to Amazon’s earnings report, expected to show a 21% jump in cloud sales.

Nio stock jumps as the Chinese EV maker expects to turn profitable in the fourth quarter, with earnings from operations forecasted between 200-700 million Chinese yuan. Estee Lauder shares tumble on tariff concerns, while E.l.f. Beauty stock soars after upbeat profit guidance. Arm Holdings shares fall due to missed estimates in licensing sales, while Broadcom rises following Alphabet’s increased capital expenditure forecast.

Read more at Yahoo Finance: S&P 500, Nasdaq sink, adding to tech sell-off after jobs data as Google slides, Amazon looms