US stock futures fell on Thursday after disappointing earnings from Alphabet reignited concerns about the mounting costs of artificial intelligence investments. Nasdaq 100 futures dropped more than 1%, while S&P 500 futures slipped 0.5%.
In after-hours trading, Alphabet, Google’s parent company, sank about 10% after reporting weaker-than-expected third-quarter revenue across most of its core businesses, which help fund its AI initiatives. By contrast, Microsoft gained nearly 3% after posting better-than-expected quarterly results, driven by robust growth in its Azure cloud infrastructure division.
During Wednesday’s regular session, the Dow Jones Industrial Average added 0.19%, the S&P 500 rose 0.28%, and the Nasdaq Composite advanced 0.27%. These gains followed the Federal Reserve’s decision to leave interest rates unchanged, even as two policymakers dissented in favor of a 25-basis-point hike. Fed Chair Kevin Warsh said he remained confident that inflation expectations were well anchored.
