Nasdaq futures fell 0.93% as Alphabet shares dropped 10.4% in premarket trading, putting the company on track to lose more than $400 billion in market value if losses hold. Investors also awaited US inflation and GDP data.
Nasdaq futures fell about 1% on Thursday after Alphabet reported disappointing search advertising results and a surge in cash burn as AI-related spending accelerated. Its shares fell 10.4% in premarket trading, potentially erasing more than $400 billion in market value if losses hold. Jeremy Saltzberg of Check Capital Management said investors are scrutinizing monetization timelines against capital expenditure and are no longer giving all hyperscalers a “free pass” to spend without limit.
Microsoft rose 2.1% after delivering a cash-flow beat and forecasting strong cloud growth. Fortinet fell 26.2% after reporting third-quarter results, while ServiceNow dropped 19.6% after missing third-quarter profit estimates. Marvell Technology eased 12.4% after reports that it was in advanced talks to buy Lumentum Holdings; Lumentum shares rose 4.8%.
At 7:02 a.m. ET, Dow futures were down 0.09%, S&P 500 futures 0.2% and Nasdaq 100 futures 0.93%. The Federal Reserve held rates steady on Wednesday. The September Personal Consumption Expenditures report and third-quarter GDP reading were due later Thursday; traders saw an over 81% chance of a December rate hike.
