US stock index futures declined before Alphabet Inc. announced earnings. Traders await the latest signs to determine whether hyperscale cloud computing companies' spending on artificial intelligence will pay off; rising oil prices have also dampened market sentiment. At 8:34 New York time, S&P 500 futures fell 0.3%, and Nasdaq 100 futures fell 0.9%. After two consecutive days of rebound, the momentum was interrupted, and Dow futures fell 0.2%. The US has expanded the scope of air strikes against Iran, and both sides have sent signals that they have no intention of restarting negotiations, pushing the price of Brent crude oil to rise above 95 US dollars per barrel for a while. Inflation concerns continued to rise due to rising oil prices, and US Treasury yields climbed to a two-month high. The dollar did not change much. Alphabet said last quarter that it plans to more than double this year's capital expenditure compared to 2025, to a maximum of 190 billion US dollars. Investors will look for evidence to determine whether these investments are yielding returns. However, global AI infrastructure construction companies need to continue this increase in spending to support their high valuations. At the time of the release of Alphabet's earnings report, chip makers leading the market were experiencing sharp fluctuations as investors feared that the growth rate of AI spending would be difficult to sustain. Amanda Lyons of Energy Group Capital said, “Alphabet's announcement is not just a financial report, but also an explanation of the health of the entire AI investment cycle. If management's willingness to invest in AI weakens slightly, the market will not only punish Google, but also question the sustainability of the entire AI construction cycle.” However, she said capital expenditure alone is not enough because “investors are increasingly looking to see evidence that these expenses are yielding returns.”

US stock index futures declined before Alphabet Inc. announced earnings. Traders await the latest signs to determine whether hyperscale cloud computing companies' spending on artificial intelligence will pay off; rising oil prices have also dampened market sentiment. At 8:34 New York time, S&P 500 futures fell 0.3%, and Nasdaq 100 futures fell 0.9%. After two consecutive days of rebound, the momentum was interrupted, and Dow futures fell 0.2%. The US has expanded the scope of air strikes against Iran, and both sides have sent signals that they have no intention of restarting negotiations, pushing the price of Brent crude oil to rise above 95 US dollars per barrel for a while. Inflation concerns continued to rise due to rising oil prices, and US Treasury yields climbed to a two-month high. The dollar did not change much. Alphabet said last quarter that it plans to more than double this year's capital expenditure compared to 2025, to a maximum of 190 billion US dollars. Investors will look for evidence to determine whether these investments are yielding returns. However, global AI infrastructure construction companies need to continue this increase in spending to support their high valuations. At the time of the release of Alphabet's earnings report, chip makers leading the market were experiencing sharp fluctuations as investors feared that the growth rate of AI spending would be difficult to sustain. Amanda Lyons of Energy Group Capital said, “Alphabet's announcement is not just a financial report, but also an explanation of the health of the entire AI investment cycle. If management's willingness to invest in AI weakens slightly, the market will not only punish Google, but also question the sustainability of the entire AI construction cycle.” However, she said capital expenditure alone is not enough because “investors are increasingly looking to see evidence that these expenses are yielding returns.”