FX.co ★ US Futures Slide as Alphabet Shares Tumble

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.