- The Nasdaq led Wall Street lower on Wednesday, with a mixed performance from technology stocks as investors awaited key earnings reports.
- The S&P 500 fell by 10.24 points, or 0.14%, closing at 7,498.96, while the Dow ended virtually unchanged.
- Oil futures settled at a six-week high, driven by concerns over Middle East hostilities and threats to shipping in the Red Sea.
- U.S. equity futures slipped early Thursday as investors weighed fresh earnings and rising oil prices, with futures tied to the Dow losing 43 points.
- Alphabet shares fell by 3% in extended trading after announcing a capital expenditure outlook for 2026 of up to $205 billion.
- The Dow Jones Industrial Average fell by 6.06 points, or 0.01%, closing at 52,218.58, while the Nasdaq Composite lost 146.30 points, or 0.57%, to 25,690.90.
- Investors are closely monitoring technology earnings to gauge the health of a market rally fueled by enthusiasm for artificial intelligence.
- High oil prices are contributing to inflation worries among investors, as noted by Schwab's Gordon.
The Nasdaq led Wall Street lower on Wednesday, with technology stocks showing mixed performance as investors awaited key earnings reports to assess the market's health. The S&P 500 lost 10.24 points, or 0.14%, closing at 7,498.96, while the Nasdaq Composite fell 146.30 points, or 0.57%, to 25,690.90.126
Second-quarter results from Alphabet and Tesla, part of the 'Magnificent Seven' megacap companies, were released after the bell. Alphabet's shares slid 3% in extended trading after announcing a capital expenditure forecast for 2026 as high as $205 billion, reflecting strong demand for artificial intelligence. Meanwhile, Tesla's stock fell over 5% in premarket trading due to negative free cash flow reported for the second quarter.57
The market's decline was compounded by rising oil prices, which settled at a six-week high amid geopolitical tensions in the Middle East. Oil futures rose around 3% as Yemen's Iran-backed Houthi militia threatened shipping in the Red Sea, raising inflation concerns. Schwab's Gordon noted, "Excluding the megacap AI trade, there's an element of what's going on with oil that's driving the market," highlighting the dual pressures of tech earnings and oil prices on investor sentiment.
U.S. equity futures also slipped early Thursday, with the Dow Jones Industrial Average tied futures losing 43 points, or 0.1%. Investors remain cautious as they weigh fresh earnings against the backdrop of rising oil prices and inflation worries.8
“Alphabet shares slid 3% after it forecast 2026 capital expenditures up to $205 billion, pointing to strong AI demand. Tesla stock fell over 5% premarket after both Alphabet and Tesla reported negative free cash flow for the second quarter.”
CNBC
