Alphabet's AI spending fears drag Nasdaq futures lower

Nasdaq futures fell Thursday as investors worried that major tech companies' heavy spending on artificial intelligence may not generate sufficient returns, with Alphabet shares dropping 10.5% in premarket trading after disappointing quarterly results. Alphabet's weaker-than-expected search advertising performance and rising AI infrastructure costs raised questions about how quickly the company can convert investments into revenue and profits. Microsoft shares rose 3.5% on strong cash flow and cloud growth, offering a contrasting signal. Software stocks declined, with ServiceNow falling 19% on missed profit estimates, while chipmakers including Nvidia, AMD, and Intel also dropped. Investors awaited the September Personal Consumption Expenditures report, the Federal Reserve's preferred inflation gauge, for clues on future interest rate decisions.