Wall Street opens lower as Alphabet selloff exposes AI spending divide
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 were flat. Alphabet plunged 10.2% in pre-market trading after reporting revenue below expectations and negative free cash flow of $9.07 billion, while Microsoft rose 3.6% on strong Azure growth of 48% and $18.6 billion in positive free cash flow. Investors are now awaiting US inflation and growth data, more earnings, and an unexpected European Central Bank leadership change. The Federal Reserve held rates at 3.75%-4% Wednesday, with markets pricing over 81% odds of a December hike. Amazon and Intel report after the close, while ECB President Christine Lagarde announced she will leave office on February 7, 2027, months before her term ends.