Nasdaq futures fall as Alphabet and Microsoft split the AI trade
Thursday opens with weaker U.S. technology futures, a mixed Asian close and European markets searching for direction before major economic releases.
U.S. technology futures were lower early Thursday as investors weighed sharply different reactions to Alphabet and Microsoft earnings. CNBC and Reuters reported pressure on Nasdaq futures after Alphabet fell in extended trading, while Microsoft gained. These are early-session indications, not the outcome of Thursday's U.S. stock session.
The contrast is about cash as well as cloud growth. CNBC and Reuters reported negative quarterly free cash flow of about $9.1 billion at Alphabet, while Microsoft generated about $18.6 billion. Both companies reported strong cloud growth, but spending and cash generation gave investors different results to assess. Alphabet kept its 2026 capital-spending forecast at $195 billion to $205 billion. Microsoft's outlook called for Azure revenue growth of 49% to 50% in its next quarter. Those forecasts are management expectations, not completed results.
Asian markets finished unevenly. Japan's Nikkei 225 closed 1.10% higher at 64,659.47, while South Korea's Kospi fell 1.24% to 5,937.66. CNBC and Il Sole 24 Ore reported the Japanese close; CNBC and Yonhap reported the Korean close. Samsung's earnings and shareholder-return announcement were a focus in Seoul. Our Samsung report separates the quarterly results from the payout details still to come.
European shares were mixed in early trading as investors weighed company earnings and awaited the European Central Bank's decision. CNBC and Il Sole 24 Ore described an uneven regional session. Shell's results added an energy-sector story: the company reported higher adjusted earnings and announced a larger buyback. See our Shell report.
The next U.S. calendar test is at 8:30 AM ET, when the advance estimate of third-quarter GDP and September personal income and spending, including PCE inflation, are due. Those releases had not arrived at this article's publication time. The growth and inflation reports will add new evidence after Wednesday's Fed rate hold. Yesterday's regular-session close is in the October 28 Dusk Ledger; it is separate from today's futures and premarket moves.
