Markets eye Alphabet AI spending, Amazon earnings ahead

Global markets moved cautiously on Thursday as investors tracked major technology developments, including Alphabet’s aggressive artificial intelligence spending plans and upcoming earnings from Amazon. Central bank policy decisions in Europe and declining precious metal prices also influenced market sentiment.

Markets mixed as investors assess tech sector outlook

U.S. stock futures traded mixed ahead of the Wall Street open, reflecting investor uncertainty as markets digested mega-cap technology earnings and continued volatility in software stocks. Dow futures edged slightly lower, while S&P 500 and Nasdaq 100 futures posted modest gains.

Recent weakness in software companies has raised questions about the evolving impact of artificial intelligence on the sector. Analysts note that the market is increasingly distinguishing between firms expected to benefit from AI adoption and those facing disruption risks, leading to sharper divergences in performance.

Alphabet boosts AI ambitions with potential spending surge

Alphabet captured market attention after signaling that it may significantly increase capital expenditures to accelerate its artificial intelligence strategy. The Google parent company suggested investments could rise toward the $175 billion to $185 billion range, aimed at expanding advanced data centers and specialized chips supporting AI models.

Chief Executive Officer Sundar Pichai highlighted strong returns from AI-related investments, pointing to robust growth across multiple business segments. The company’s Gemini AI platform reportedly reached hundreds of millions of monthly active users, reinforcing its positioning in the intensifying AI competition.

While some investors expressed concerns over rising spending levels, improved performance in Google’s cloud business helped offset fears and stabilize sentiment around the stock.

Amazon earnings in focus amid AI race

Attention now shifts to Amazon, which is set to release earnings after the closing bell. Investors are closely watching the company’s artificial intelligence strategy, particularly within its Amazon Web Services (AWS) division, a key revenue driver.

Despite strong long-term growth fueled by cloud computing, Amazon has faced questions over whether it is keeping pace with rivals in the AI race. Expectations remain high for the crucial holiday quarter, with analysts forecasting solid revenue growth driven by expanding data center capacity and AI-powered services.

Central bank decisions and falling metals add pressure

Beyond corporate developments, markets are preparing for policy announcements from the European Central Bank and the Bank of England, both widely expected to maintain current interest rates. However, cooling eurozone inflation has raised speculation about potential future rate cuts.

Meanwhile, precious metals declined as a stronger U.S. dollar weighed on sentiment. Silver led losses following sharp declines in Chinese markets, highlighting ongoing volatility across commodities amid shifting expectations for global monetary policy.