Investors weighed strong technology demand against rising capital expenditure, higher oil prices and renewed inflation risks.
MARKET INSIDER — US stock futures declined early Thursday as Alphabet’s sharply higher investment plans renewed questions about the cost of the artificial-intelligence race, while escalating US-Iran tensions pushed oil prices higher.
Dow Jones Industrial Average futures slipped 0.1%, while S&P 500 and Nasdaq 100 futures fell 0.3% and 0.4%, respectively.
Key highlights
- Alphabet projected 2026 capital expenditure of $195 billion to $205 billion.
- Its shares fell about 3% in extended trading despite strong quarterly results.
- Brent crude settled above $94 as US-Iran tensions intensified.
- Investors await another heavy earnings schedule and weekly jobless-claims data.
Alphabet raised its capital-spending forecast from the previous range of $180 billion to $190 billion, citing strong demand for AI infrastructure. The guidance suggests cloud and AI investment remains robust, but the scale of spending unsettled investors already concerned about whether hyperscalers can generate sufficient returns on data centres and computing capacity. Alphabet Investor Relations
The decline followed a subdued Wednesday session in which the Dow finished almost unchanged, the S&P 500 lost 0.14% and the Nasdaq Composite fell 0.57%.
Oil added another source of pressure. Brent settled around $94.40 a barrel after renewed US strikes on Iran and Secretary of State Marco Rubio questioned Tehran’s commitment to negotiations. Sustained energy-price increases could lift inflation, squeeze corporate margins and complicate the Federal Reserve’s interest-rate outlook. Reuters
Asian markets nevertheless advanced Thursday, supported by expectations that Alphabet’s investment will benefit regional semiconductor suppliers. South Korea’s Kospi rose more than 3%, while Japan’s Nikkei gained about 1% later in the session. Reuters
Dow, American Airlines, T-Mobile, Union Pacific and Norfolk Southern are among the companies reporting before Thursday’s opening bell, followed by Intel after the close. Weekly US jobless claims are due at 8:30 a.m. Eastern time and will offer the next indication of labour-market conditions.
