Nasdaq futures fell early Thursday after Alphabet’s latest earnings report unsettled investors. The tech-heavy index looked set to open lower as attention shifted to Google’s parent company.
Alphabet reported a sharp increase in capital spending during the quarter. The company burned through cash faster than analysts had anticipated.
The results raised concerns about the cost of the company’s artificial intelligence push. Investors questioned whether those expenses will translate into near-term profits.
Futures tied to the S&P 500 and Dow Jones Industrial Average also slipped. The broader market faced pressure as technology shares led the decline.
Alphabet’s stock moved lower in premarket trading following the report. The reaction reflected disappointment with the pace of spending and its impact on margins.
Other major technology companies were mixed ahead of the opening bell. Market participants weighed the earnings news against recent economic data.
Trading is expected to remain volatile as investors digest the results. Attention now turns to upcoming reports from other major firms this week.
