Before the bell: AI rally faces Alphabet test as oil climbs
SPY•European earnings season continues
European earnings are also in full swing.
Airbus AIR.PA unveiled ambitious medium-term targets and a 5 billion euro ($5.8 billion) buyback, while Norwegian energy group Equinor EQNR.OL and Spanish lender Santander SAN.MC both delivered results ahead of expectations.
Alphabet outlook and oil prices in focus
Alphabet's GOOGL.O outlook for AI investment is a key focus, with expectations running high and little room for disappointment. Citi sees capital expenditure rising 62% to $308 billion by 2027 and a further 28% the following year, turning free cash flow negative before a rebound in 2029.
Oil is providing another market driver, with Brent LCOc1 climbing towards $93 a barrel as Middle East tensions persist.
Markets cautious ahead of Alphabet results
European shares are set for a cautious open on Wednesday, with the next test for markets coming after the U.S. close when Alphabet reports earnings, as investors look for signs that spending remains strong enough to sustain the AI-driven rally.
A more than 5% rebound in the Philadelphia Semiconductor Index .SOX from bear-market territory fuelled a rally in Asia, boosting South Korea's Kospi, led by Samsung Electronics 005930.KS and SK Hynix .
