US stock index futures were largely unchanged on Thursday as investors digested mixed signals from corporate earnings, rising artificial intelligence spending plans, and continued volatility in the cryptocurrency market.
The cautious mood followed a significant sell-off in software stocks that dragged major benchmarks lower for a second consecutive session.
S&P 500 futures and Nasdaq 100 futures were both up by 0.10%, while Dow Jones Industrial Average futures added 50 points.
The subdued activity came after heightened earnings-related volatility and investor reassessment of technology sector valuations.
Alphabet spending plans shake sentiment
Alphabet shares declined following its latest earnings announcement, even as the company delivered strong quarterly results.
The Google parent projected a sharp increase in artificial intelligence investment and outlined plans for 2026 capital expenditures of up to $185 billion.
Alphabet shares, which surged 65% in 2025, slipped 2.79% in premarket trading.
Despite pressure on Alphabet, the spending outlook boosted sentiment in parts of the semiconductor sector.
Shares of Broadcom rose 4.6%, Lam Research gained 1.8%, and Applied Materials advanced 2.3%. Nvidia also climbed 1.3%, as investors interpreted Alphabet’s spending commitments as supportive for chip demand linked to artificial intelligence infrastructure.
However, concerns remain about the sustainability of massive AI spending by major technology companies.
Market attention is now shifting to Amazon, which is expected to release results after the close, with investors closely watching the company’s AI investment strategy.
Nvidia will be the final member of the “Magnificent Seven” to report earnings, scheduled for February 25.
Analysts expect major technology firms collectively to invest more than $500 billion in artificial intelligence this year.
Qualcomm outlook and crypto losses weigh on markets
Qualcomm shares slid sharply after issuing a weaker-than-expected forecast.
The company cited a global memory shortage as a key factor behind the outlook, with its shares falling 12%. Chip designer Arm also dropped 7.5% after reporting licensing revenue below Wall Street expectations.
At the same time, losses in cryptocurrency markets added to investor caution.
Bitcoin dipped below $70,000, a level widely regarded as critical support, extending the broader digital asset sell-off.
Investors rotate toward value and smaller-cap stocks
Wall Street’s recent turbulence has accelerated investor rotation away from expensive technology stocks toward more attractively valued sectors.
The S&P 600 small-cap index rose 0.9%, while the S&P 500 value index gained for a fifth consecutive session.
The S&P 400 mid-cap index also climbed 0.7%.
Software stocks have been particularly pressured amid growing concerns that artificial intelligence could disrupt existing business models.
The S&P 500 software and services index recorded its sixth straight decline, wiping out approximately $830 billion in market value since January 28.
Investors are also monitoring upcoming economic data, including the delayed December JOLTS report and next week’s January jobs report, as markets continue evaluating the broader economic outlook.
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