Nasdaq futures are pointing to a sharply lower open, driven by negative reactions to quarterly results from Alphabet and Tesla. While Alphabet's cloud division showed strong growth, the company's increased forecast for capital expenditures has revived concerns across the sector about the high cost of the AI race. Tesla shares also fell after the company missed profit estimates and reported negative free cash flow. Rising oil prices amid geopolitical tensions are adding to the negative sentiment.
Mega-Cap Tech Earnings Disappoint, Stoking AI Spending Fears