U.S. stock futures dipped on Wednesday night as investors reflected on new earnings, worries about artificial intelligence expenditures, and climbing oil prices.
The futures associated with the Dow Jones Industrial Average dropped 75 points, or about 0.1%. Meanwhile, S&P 500 futures declined by 0.3%, with Nasdaq 100 futures falling 0.4%.
Alphabet’s shares experienced a 3% decrease in after-hours trading following the report from Google’s parent company, which highlighted strong AI demand and increased capital spending projections for 2026, potentially reaching $205 billion. This uptick in spending comes as investor enthusiasm over hyperscalers’ AI investments has waned recently.
In regular market activity, the Dow lost 6.06 points (0.01%), the S&P 500 was down 0.14%, and the technology-oriented Nasdaq Composite Index fell by 0.57%.
On Thursday, markets in Asia-Pacific started on a positive note, with Japan’s Nikkei Stock Average climbing 0.55% and the TOPIX up by 0.22%. The South Korean Kospi index increased by 2.3%, while the smaller Kosdaq gained 1.42%. In Australia, the S&P/ASX 200 saw a rise of 0.72%.
Traders are closely monitoring oil prices, which rose on Wednesday after the U.S. confirmed additional strikes against Iran, compounded by remarks from Secretary of State Marco Rubio indicating Tehran’s lack of seriousness in negotiations. If oil prices continue to surge, it could keep inflation elevated, further complicating the Federal Reserve’s interest rate strategies.
“With scant positive earnings on the horizon, investors’ focus has shifted back to geopolitical tensions,” remarked Hardika Singh, an economic strategist at Fundstrat. “Investors who previously believed oil prices had reached their peak are now reassessing their inflation forecasts. Companies will need strong pricing power to deliver returns.”
Looking ahead to Thursday, investors anticipate a busy day of earnings announcements, with Dow Air, American Airlines, T-Mobile, Union Pacific, and Norfolk Southern set to report before the market opens. Intel is expected to release its figures later in the day.
Additionally, weekly unemployment claims data will be unveiled at 8:30 a.m. ET.
