Investors await Alphabet and Tesla results to gauge whether AI investments justify Wall Street’s recent rally in megacap stocks.
U.S. stock index futures fell on Wednesday, led by declines in semiconductor shares, as caution gripped markets ahead of key earnings from Alphabet and Tesla. The drop reflects investor unease over whether multibillion-dollar AI investments by Big Tech will deliver sufficient returns to sustain the sector’s recent gains.
After rallying from March lows, major indexes have stalled amid volatility in chip stocks, which have been pivotal to the AI-driven surge. Alphabet faces heightened scrutiny after delays in launching a critical AI model raised concerns about its spending efficiency. Tesla, another