Alphabet rises 1.1% as tech shares lead a quiet Monday

How much did Alphabet shares move?

Alphabet's (Nasdaq: GOOGL) Class A shares rose 1.1% on Monday, Oct. 19, and closed at $344.18. The previous close was $340.59.

Why it matters: The gain added $21 billion to the company's market value, which now stands at $2 trillion. Traders exchanged $4.8 billion worth of Alphabet shares during the session.

By the numbers: Even after the gain, the stock sits 14.5% below its 52-week high of $402.62.

Why did technology shares lead the market?

Tech stocks did most of the lifting. The Nasdaq-100 rose 1.2%. That index tracks the largest Nasdaq companies, most of them in tech. The technology sector fund (XLK) gained 1.3%.

The broader market moved less. The S&P 500 rose 0.4% and closed at 7,690.73. The Dow edged down 0.1%.

Groups that are sensitive to interest rates lagged. The 10-year Treasury yield rose 6 basis points and ended at 5.15%. The utilities sector fund slid 2.0%, and the real estate fund slid 1.2%. Higher yields can make these dividend-heavy groups look less attractive next to bonds.

What did TeraWulf say about Google?

Separate comments from a smaller company pointed to how Alphabet's AI spending may spread. TeraWulf has shifted from Bitcoin mining to building data centers for AI. Its chief executive, Paul Prager, said the company's Lake Mariner site has an investment-grade backstop from Alphabet's Google.

A backstop here is a commitment from a highly rated party that supports the deal. Prager said TeraWulf's Kentucky project carries a similar commitment. He said that backing lets the company raise money at competitive rates.

Prager described TeraWulf as a colocation business. It owns the land and the power, builds the facility and runs it. "We are a landlord of powered real estate," Prager said.

He contrasted that model with neoclouds such as CoreWeave, newer cloud firms that rent out AI computing power. He said TeraWulf signs long-term agreements and does not rely on guessing the future value of AI chips. TeraWulf shares rose on Monday after a sharp selloff over the past month, according to reports.

What are the open questions, and what comes next?

The other side: The Google link rests on one supplier's account. Prager himself said the key test is whether TeraWulf delivers projects on schedule and on budget. He said the company expects to deliver its next data hall in the fourth quarter and another phase in the first quarter of next year.

What’s next: Alphabet's own shares remain below their high. The Nasdaq-100 has also slid 2.9% so far in October, despite Monday's gain.

Alphabet is scheduled to report quarterly results on Oct. 28. The Federal Reserve announces its interest-rate decision the same day at 2 p.m. ET. The results may show how much the company is spending on AI infrastructure.