Nasdaq futures slide 1% as Alphabet earnings shake AI confidence

Nasdaq futures fell more than 1% on Thursday after Alphabet's disappointing earnings reignited doubts about returns on massive artificial intelligence investments. Alphabet shares plunged 10% in extended trading after sales missed expectations. The weak performance fueled concerns the Google parent is losing ground to competitors in the AI race despite spending hundreds of billions on the technology. Amazon's results Thursday and Apple's next week will further test market sentiment as investors demand evidence that big investments are translating into stronger profits. The Federal Reserve held interest rates steady Wednesday at 3.75%-4%, with the statement citing persistent geopolitical uncertainty and resilient domestic demand. European markets rose ahead of the European Central Bank's rate decision, while Asian-Pacific markets closed mixed.