US Futures Slip as Big Tech Capex, Soaring Oil Rattle Markets
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- Dow, S&P 500, and Nasdaq-100 futures all slipped Thursday, with Dow and S&P 500 contracts falling ~0.4% and Nasdaq-100 futures dropping 0.5%, following Wednesday's retreat.
- Alphabet posted a fundamentally strong quarter but its raised capex outlook drew investor scrutiny over AI's return on investment, pressuring shares of the Google parent.
- Tesla CEO Elon Musk called 2026 a "massive capex year" for the company, with $25 billion in capital spending earmarked for Optimus robots, robotaxis, and data centers.
- Brent crude oil futures jumped to $97 per barrel, closing in on the $100 threshold, while West Texas Intermediate rose to $89 after Iran-backed Houthis claimed attacks on Red Sea tankers.
- Treasury yields on the 10-year and 30-year bonds climbed to their highest levels since May as oil-driven inflation fears pushed back against bets that the Federal Reserve would cut interest rates this year.
- Investors are awaiting initial jobless claims at 8:30 a.m. ET along with earnings from Intel, T-Mobile US, and Lockheed Martin.
Why it matters: A dual squeeze is hitting markets: Big Tech's AI capex commitments near $25 billion at Tesla alone are testing investor patience on AI returns, while Brent crude approaching $100 amid Houthi Red Sea attacks is reigniting inflation fears and pushing 30-year Treasury yields to multi-month highs, complicating the Fed's rate-cut path.
