Nasdaq futures fall 1% as Alphabet results intensify AI spending fears
Nasdaq futures fell 1.01% as Alphabet shares dropped 10.2% after disappointing search advertising results and rising AI-related spending. Microsoft rose 3.6% on strong cash flow and cloud growth, while investors awaited US inflation and GDP data.
1. Alphabet weighs on futures
Nasdaq futures fell about 1% on Thursday after Alphabet’s results renewed concerns about AI spending. Alphabet shares slid 10.2% in premarket trading, putting the company on track to lose more than $400 billion in market value if losses held, after reporting disappointing search advertising results and a surge in cash burn as AI-related spending accelerated.
2. Microsoft offers a contrast
Microsoft climbed 3.6% after delivering a big cash-flow beat and forecasting strong cloud growth. Fortinet fell 25% after reporting third-quarter results, while ServiceNow dropped 18.2% after missing third-quarter profit estimates.
3. Investors await economic data
The Federal Reserve held interest rates steady on Wednesday. Investors were watching for the September Personal Consumption Expenditures report and third-quarter GDP reading; traders saw a more than 81% chance of a December rate hike.
