Tech stocks tumble as Nasdaq futures drop 800 points on weak earnings

Tech stocks plunged Friday as Nasdaq futures fell nearly 800 points, or 2.7%, following disappointing earnings from Alphabet, Amazon, and Intel, reigniting fears about the artificial intelligence trade's stability. Intel dropped over 26% pre-market, while Alphabet slid more than 12% Thursday, its worst day since 2004. Analysts called it one of the worst tech earnings seasons in memory, with weak results from major firms heightening concerns that massive AI investments won't deliver expected returns. Investors also worry about the sustainability of debt financing data center capital expenditures, with S&P 500 and Dow futures down 1.1% and 0.1% respectively. UBS advised clients to diversify beyond AI, noting high expectations and wide outcome differences underscore risks of single-stock concentration, though maintaining a constructive outlook on AI's structural growth.