Updated
Updated · CNBC · Jul 22
U.S. Futures Slip as Alphabet Drops 3% on $205 Billion AI Spending Plan
Updated
Updated · CNBC · Jul 22

U.S. Futures Slip as Alphabet Drops 3% on $205 Billion AI Spending Plan

3 articles · Updated · CNBC · Jul 22

Summary

  • Dow futures fell 75 points, S&P 500 futures lost 0.3% and Nasdaq 100 futures dropped 0.4% late Wednesday as investors digested Alphabet's outlook and higher oil.
  • Alphabet slid 3% in extended trading after raising its 2026 capital-expenditure forecast to as much as $205 billion, reviving investor unease over whether hyperscalers' AI spending will pay off.
  • Oil prices rose after fresh U.S. strikes on Iran and Secretary of State Marco Rubio said Tehran was "not serious about talks," pushing traders to recalculate inflation and Fed-rate risks.
  • Asia-Pacific markets opened higher despite the U.S. futures pullback, with South Korea's Kospi up 2.3% and Japan's Nikkei 225 ahead 0.55%.
  • Thursday's next tests include earnings from American Airlines, T-Mobile and Intel, along with weekly jobless claims at 8:30 a.m. ET.

Insights

Are tech giants' massive AI bets turning blue-chip stocks into high-risk gambles on future payoffs?
With AI's energy demand soaring, will the global power grid become the biggest obstacle to the tech revolution?