The Nasdaq Composite fell 1,2% in Thursday trading as investors digested ballooning capital expenditure guidance from Alphabet and underwhelming Tesla earnings, triggering a risk-off wave that swept cryptocurrency markets lower alongside equities.

Bitcoin slipped below key support levels while Ethereum followed the broader downturn, underscoring how macro sentiment continues to dictate price action across digital assets.

Tesla's quarterly report added to the unease. The electric-vehicle maker missed revenue estimates and offered a cautious forward outlook, compounding concerns that even the tech sector's biggest names are facing margin pressure despite heavy AI investment.

The selloff pushed the Nasdaq into negative territory for the session, with technology heavyweights bearing the brunt of the selling. The simultaneous pressure across mega-cap tech and cryptocurrencies reflected a broad-based risk-off repositioning among institutional and retail investors alike.

The selloff signals a shift in how markets are pricing the AI infrastructure buildout. For months, investors rewarded any company with an AI spending narrative. Alphabet's $205 billion capex guide forces a reckoning: massive spending needs to translate into visible earnings growth, and the market is starting to demand proof.