US equity futures slipped as investors weighed fresh earnings, worries about artificial intelligence spending and rising oil prices. Alphabet’s higher 2026 capital expenditure outlook and a jump in oil prices pushed Dow, S&P 500 and Nasdaq futures lower.
US equity futures slipped Wednesday evening as investors weighed fresh earnings, concerns over artificial intelligence spending and climbing oil prices. Futures tied to the Dow Jones Industrial Average lost 69 points, or 0.1%, while S&P 500 futures dropped 0.2% and Nasdaq 100 futures fell 0.3%.
Earlier, in regular trading, the Dow fell 6.06 points, or 0.01%. The S&P 500 lost 0.14%, while the Nasdaq Composite dropped 0.57%.
Alphabet’s spending outlook rattles tech
Alphabet shares slid 3% in extended trading after the Google parent raised its 2026 capital expenditure forecast to as high as $205 billion, pointing to strong AI demand. Investors have grown more cautious in recent months about hyperscalers’ spending on the AI effort.
In Thursday’s premarket trading, Alphabet fell 5% even after second-quarter earnings and revenue topped Wall Street’s targets on stronger-than-expected cloud growth. Tesla plunged 7% after reporting quarterly results that came in far below expectations.
Oil climbs on Middle East tensions
Oil was another pressure point. Prices moved higher after the US launched another round of strikes against Iran, and Secretary of State Marco Rubio said Tehran was not serious about negotiations. By Thursday’s premarket, West Texas Intermediate crude had jumped more than 4% to around $90.65 a barrel, after Iran-backed Houthi rebels in Yemen claimed to attack two Saudi Arabian oil tankers in the Red Sea.
A sustained rise in crude could keep inflation elevated and complicate the Federal Reserve’s interest rate path. With few strong earnings to distract them, market watchers turned back to geopolitics; according to Fundstrat strategist Hardika Singh, “investors’ attention has gravitated toward the war again”.
Earnings and data ahead
Looking ahead, Dow, American Airlines, T-Mobile, Union Pacific and Norfolk Southern report before the open, with Intel due after the close. Weekly jobless claims are due at 8:30 a.m. ET. Claims are expected to rise to 214,000 from 208,000 the previous week.
Sources: CNBC, Investor’s Business Daily
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