The S&P 500 fell for another day on Thursday, with popular trades unraveling as investors took a risk-off stance.

The broad market index and the Nasdaq Composite declined 1% and 1.4%, respectively. The Dow Jones Industrial Average shed 342 points, or 0.7%.

Alphabet was the latest of the so-called “Magnificent Seven” companies to report earnings results. The company projected a sharp increase in artificial intelligence spending that spooked some investors, calling for 2026 capital expenditures of up to $185 billion. Shares were last down 7%.

Alongside Alphabet, Qualcomm came under pressure, sliding 9% after posting a weaker-than-expected forecast because of a global memory shortage.

Elsewhere, the sell-off in the cryptocurrency market continued to gain steam, as bitcoin fell below $70,000 — which is considered a key support level. In the precious metals space, pressure on silver resumed. The metal’s prices snapping a two-day rebound and dropping as much as 16%. It had plummeted nearly 30% last Friday.

Adding to the downbeat sentiment, concerns surrounding labor market weakness grew after outplacement firm Challenger, Gray & Christmas reported that U.S. employers announced 108,435 layoffs in January, marking the highest January total since the global financial crisis. Also, initial jobless claims for the week ended Jan. 31 rose more than expected, according to the Labor Department.

Wall Street is coming off a turbulent trading session, as a sell-off in chip and software stocks drove the S&P 500 to a second straight day of losses. The S&P 500 and the Nasdaq Composite slid 0.5% and 1.5%, respectively, as the tech rout intensified. However, the 30-stock Dow added 260 points, or 0.5%. The equal-weighted S&P 500 added 0.9%.

Software stocks were pummeled as fears of AI disruption in the industry had investors rotating out of technology en masse and into other more attractively valued parts of the market.

“After three years of strong AI rallies fueled by capex expansion, investors are now rewarding AI spending only when it comes with strong revenue growth,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “With AI continuing to reshape industries, we think the latest sell-off is unlikely to be a one-off event.”