Nasdaq futures drop 260 points as Alphabet's AI costs spook markets
US stock futures were mixed Thursday as tech shares fell after Alphabet's earnings reignited concerns about artificial intelligence costs. Nasdaq 100 futures dropped 260 points, or 0.87%, while S&P 500 futures slipped 0.28% and Dow futures traded flat. Alphabet tumbled 10.2% in pre-market trading after reporting third-quarter revenue of $127.6 billion, missing expectations, with negative free cash flow of $9.07 billion despite Google Cloud sales more than doubling. Microsoft gained 3.6% on $18.6 billion in positive free cash flow and 48% Azure growth, highlighting investor divergence between AI spenders and cash generators. Investors now await US inflation and growth data, including September PCE inflation and preliminary third-quarter GDP, plus earnings from Amazon and Intel. European Central Bank President Christine Lagarde announced her departure for February 2027, months before her term ends, ahead of the ECB's rate decision.