Alphabet Earnings Send Nasdaq Futures Lower on October 29

Concerns about artificial intelligence spending and disappointing quarterly results from Alphabet sent US technology stock futures lower on October 29, 2026, as investors reassessed the financial returns of major technology companies' investments. Nasdaq-100 futures fell approximately 1.3% in premarket trading, while S&P 500 futures declined 0.4% and Dow Jones Industrial Average futures advanced 0.3%, according to Yahoo Finance.

Alphabet shares dropped 10.38% in premarket trading after the Google parent missed analyst expectations for adjusted earnings per share and revenue in the third quarter, according to CNBC. Despite reporting 103% growth in its cloud business, the company faced investor concerns over its cash flow and the returns from its artificial intelligence investments.

Alphabet reported negative free cash flow of $9.07 billion and maintained its full-year capital expenditure forecast at $195 billion to $205 billion, CNBC reported. The results renewed concerns about whether substantial spending on AI infrastructure will generate sufficient financial returns for the industry's largest companies.

Microsoft provided a contrasting earnings picture, with its shares rising 3.73% in premarket trading after the company exceeded analysts' expectations for revenue and earnings in its fiscal first quarter. Growth in Azure, its cloud infrastructure business, supported the results, according to CNBC and Yahoo Finance.

However, Microsoft's lower-than-expected capital expenditure figure raised questions about the pace of infrastructure expansion. CNBC reported that companies providing data center infrastructure to major cloud operators declined as investors considered the possibility that additional capacity could take longer to arrive.

The divergence between Alphabet and Microsoft contributed to renewed pressure on technology shares across Asia. Bloomberg reported that the regional technology rally stalled as mixed earnings from major technology companies revived concerns about the scale of investment in artificial intelligence. South Korea's Kospi fell 1.24% to 5,937.66, while the technology-focused Kosdaq dropped 2.34% to 753.23, according to CNBC.

Other Asian markets performed more strongly. Japan's Nikkei 225 gained 1.10% to close at 64,659.47, and the Topix rose 0.29% to 4,003.28. Australia's S&P/ASX 200 advanced 0.5% to 8,891.80, while mainland China's CSI 300 gained 1.03% to 4,041.84. Hong Kong's Hang Seng index was up 0.24% in its final hour of trading, CNBC reported.

The latest market moves followed a positive session on Wall Street on Wednesday, when the S&P 500 extended its winning streak to three sessions. Micron Technology climbed nearly 6%, Broadcom gained more than 2%, and the Nasdaq Composite advanced 0.3%, according to CNBC. Technology shares had recovered in recent sessions after experiencing substantial pressure during October.

Monetary policy remained another focus for investors. The Federal Reserve held its benchmark interest rate at 3.75% to 4% on Wednesday, a decision widely anticipated by markets. Policymakers noted that inflation remained elevated and indicated they wanted more economic information before determining their next steps.

Daniel Siluk, head of global short duration and liquidity at Janus Henderson Investors, described the decision as a measured approach rather than a fundamental change in policy direction.

"The door remains open to further tightening, but the Committee appears willing to wait for incoming data to validate the need for additional action."

Investors were scheduled to receive further economic information on Thursday through the September Personal Consumption Expenditures price index, the Federal Reserve's preferred inflation gauge, along with the first estimate of third-quarter gross domestic product and weekly jobless claims. The reports could help markets assess inflation trends and the outlook for interest rates.

Corporate earnings were also set to remain in focus, with Amazon and Intel scheduled to report after the US market close. Caterpillar and Eli Lilly were among the companies due to release results earlier in the day, according to CNBC and Yahoo Finance.