Nasdaq Futures Slide as Mixed Big Tech Results Test AI Trade
Alphabet fell 10.5% after weak search ads and higher AI cash burn, while Microsoft rose 3.5% on stronger cash flow and cloud growth.
- On Thursday, Nasdaq futures dropped as investors assessed mixed earnings from Alphabet and Microsoft alongside the Federal Reserve's decision to hold interest rates steady.
- The Federal Reserve held interest rates steady on Wednesday, opting to delay borrowing cost changes until after next week's elections while awaiting further inflation data.
- Alphabet slid 10.5% amid high AI-related cash burn, while Microsoft climbed 3.5% on strong cloud growth forecasts, reflecting divergent market views on artificial intelligence spending.
- Jeremy Saltzberg, VP and senior investment officer at Check Capital Management, said investors are no longer giving all hyperscalers a "free pass" to spend without limit.
- Traders currently see a more than 81% chance the Fed will hike interest rates in December, with markets focused on upcoming September Personal Consumption Expenditures data.
31 Articles
31 Articles
Shares in Google owner Alphabet plummet on profit miss, ad slowdown
Shares in Google parent Alphabet fell more than 10% in after-hours trading Wednesday as the company reported lower-than-expected profit and a slowdown in its advertising business while it maintained big spending on AI.
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Nasdaq Futures Slide as Investors Reassess AI Spending and Big Tech Earnings
Mixed earnings from major technology companies weighed on Nasdaq futures as investors questioned whether heavy artificial intelligence investments would deliver sufficient returns. Software and chip ... The post Nasdaq Futures Slide as Investors Reassess AI Spending and Big Tech Earnings first appeared on [your]NEWS.
US Market: Microsoft, Oracle outshine Alphabet as investors demand AI returns
Wall Street increasingly favours technology companies demonstrating financial discipline in AI investments. Microsoft and Oracle gained on strong cash flow prospects, while Alphabet shares plunged amid rising capital expenditure and slower search growth. Investors are prioritising sustainable returns, profitability and cash generation over aggressive artificial intelligence infrastructure expansion.
Idaho State Journal
World shares and U.S. futures are mixed after Google parent Alphabet's earnings disappoint
World shares and U.S. futures are mixed, weighed down by some big technology stocks after Google parent Alphabet’s earnings were below expectations. As expected, the Federal Reserve kept its key rate unchanged. Oil prices fell early Thursday, even as U.S.…
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