2 publishers · first seen Thu, 29 Oct 2026 08:33 UTC · updated Thu, 29 Oct 2026 10:01 UTC
US tech stocks were set to open lower on Thursday after mixed earnings from Alphabet and Microsoft, as investors assessed the return on heavy AI spending. Nasdaq 100 futures were down 1.2%, S&P 500 futures fell 0.4%, and Dow futures rose 0.35%. Alphabet shares dropped 10.5% premarket due to disappointing search advertising revenue and a cash burn from AI investments, with free cash flow at negative $9.1bn. The company spent $51.4bn on property and equipment in the third quarter.
Microsoft rose 3.5% after reporting strong cloud growth and a cash-flow beat, with Azure revenue reaching $33.2bn, up 48%. Total revenue was $92.3bn, exceeding forecasts. Other tech stocks declined, including Fortinet, down 25.4%, and ServiceNow, off 19%. Chipmakers Nvidia, AMD and Intel also slipped. The Federal Reserve held rates steady, and traders see over an 81% chance of a rate hike in December.
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