Morning Brief

US futures point lower, led by tech, after Alphabet warned of a sharp ramp in AI spending. Investors are weighing whether massive capital expenditures signal durable growth or margin pressure, with Amazon earnings next as the key test.

Alphabet (GOOGL) plans up to $185B in 2026 capital expenditures, nearly double last year and far above expectations, triggering a sell-off despite accelerating cloud and search growth. The message is demanding strength but near-term cash burn, reviving questions around AI returns. Amazon (AMZN) now carries the baton after the bell.

Risk appetite also cracked elsewhere. Bitcoin fell below $70,000, down 44% from its peak, dragging crypto equities like Strategy (MSTR). Commodities weakened as silver plunged and energy names slipped, with ConocoPhillips (COP) cutting output plans. Estée Lauder (EL) slid on a cautious outlook, testing confidence in its turnaround.

Trending tickers: Strategy (MSTR) as bitcoin breaks support, Estée Lauder (EL) on soft guidance, and ConocoPhillips (COP) amid oil price pressure.

Takeaways:


Alphabet’s AI capital expenditures reset is the day’s main market driver


Amazon results will frame AI spending tolerance


Crypto weakness is pressuring levered proxies


Rotation into cyclicals remains intact but uneven


Tech execution, not vision, decides the next leg

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U.S. stock futures are mixed after a sharp software-driven selloff, as renewed concern over AI disruption weighs on sentiment. Investors are watching big tech earnings after the close and parsing whether the AI trade is recalibrating rather than breaking. Crypto weakness and cautious forward guidance are adding to the defensive tone.

Software stocks slid as fears grew that generative AI could displace enterprise tools, despite pushback from Nvidia leadership. The move reflects valuation sensitivity more than a single catalyst, with investors reassessing near-term monetization timelines across AI-linked names.

Earnings are driving dispersion. Advanced Micro Devices (AMD) topped Q4 estimates but guided conservatively, highlighting heavy AI investment costs and limited China visibility. In contrast, Eli Lilly (LLY) surged after projecting up to 27% sales growth on obesity drugs, while Uber (UBER) and Chipotle (CMG) flagged softer near-term trends.

Trending tickers: AMD under pressure on guidance, LLY jumps on blockbuster demand, CMG slides as comps stall.

Takeaways:


AI enthusiasm is colliding with valuation discipline.


Earnings guidance matters more than beats.


Drugmakers are outperforming tech on growth visibility.


Market leadership is broadening beyond mega-cap software.


Volatility likely persists through peak earnings.

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US futures are mixed ahead of the open, with commodities driving volatility. Silver rebounded after a 30% rout on Friday, oil slid over 4% on signals of geopolitical deescalation, and investors are bracing for earnings and AI capital expenditures headlines.

Disney (DIS) beat estimates, powered by parks and cruises, but shares fell as succession plans dominate focus. Oracle (ORCL) plans to allocate up to $50 billion in funding to AI infrastructure, raising dilution concerns but signaling sustained demand from hyperscalers. In tech, Palantir (PLTR) reports after the close as investors debate valuation versus defense-led growth.

Trending tickers: Devon Energy (DVN) on an all-stock deal for Core Energy, Oracle (ORCL) on AI funding plans, crypto-linked names under pressure as bitcoin tests key support.

Takeaways:


Commodity volatility is spilling into broader risk sentiment


Earnings beats are not enough without clear leadership roadmaps


AI spending remains robust, but financing costs matter


Defense exposure is reshaping select tech narratives

Yahoo Finance's flagship show, Morning Brief, is your go-to source for smarter investing and market moves.Thoughts? Questions? Fan mail? Email us at [email protected].
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U.S. futures tilt higher as earnings season accelerates, with investor focus squarely on AI spending and rate policy. Dow and S&P futures edge up while Nasdaq lags, and gold trades above $5,500 as geopolitical and fiscal concerns persist. Markets are parsing whether massive tech investment is translating into near-term growth, with the Fed’s next move still data-dependent.

Big Tech spending dominated results. Meta rallied after outlining sharply higher AI capex, reframing its push as an AI reset. Microsoft slipped despite beats, with cloud growth and capacity constraints tempering sentiment. Tesla lifted long-term stakes, betting on FSD and Optimus as it pivots away from legacy models.

Macro chatter centered on infrastructure. Investors are rotating toward power, chips, and materials that enable AI buildouts, as electricity costs climb and domestic chip supply gains urgency.

Trending tickers: Meta (META) strength on AI spend credibility, Microsoft (MSFT) pressured by cloud expectations, Tesla (TSLA) volatile on robotaxi and humanoid ambitions.

Takeaways:


Earnings hinge on AI spend translating to growth


Markets reward clarity over raw capex size


Infrastructure plays gain favor over hyperscalers


Fed path still tied to jobs data


Gold reflects persistent macro anxiety

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US futures are mixed heading into the open, with Nasdaq leading as investors weigh earnings strength against policy uncertainty. Corporate results are driving sentiment as markets look past tariff headlines and toward Big Tech and the Fed.

Earnings season remains the anchor. General Motors boosted profit outlook and authorized $6 billion in buybacks, while Boeing posted another quarter of positive cash flow but failed to excite investors. Health insurers slid as Washington signaled flat Medicare Advantage payments next year.

Macro risks persist but markets are adapting. A new EU–India trade deal underscores shifting global alliances, while investors brace for a no-cut Fed decision and guidance on rates, labor, and AI-driven productivity.

Trending tickers include UnitedHealth and peers under Medicare pressure, Pinterest amid layoffs tied to AI restructuring, and Corning after a $6 billion Meta fiber deal.

Takeaways:


Earnings, not tariffs, are setting market direction


Buybacks and cash flow support cyclicals


Big Tech results will drive dispersion


Fed tone matters more than the decision


Policy noise is losing market impact

Yahoo Finance's flagship show, Morning Brief, is your go-to source for smarter investing and market moves.

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