New York, Feb 5, 2026, 05:58 EST — Premarket
U.S. stock index futures showed a mixed picture early Thursday following a sharp tech sell-off. Nasdaq 100 futures ticked up 0.13%, while Dow futures fell 0.20%, and S&P 500 futures inched down 0.01%. These contracts trade before the cash market opens and often hint at Wall Street’s initial direction.
Sentiment soured when Alphabet revealed a sharply higher capital expenditure forecast for 2026—between $175 billion and $185 billion—as it boosts AI infrastructure. The stock tumbled more than 6% in after-hours trading before clawing back some losses, underscoring investor doubts on when these hefty AI investments will pay off.
Unease is spilling into software, a sector once buoyed by fat margins and steady growth. The S&P 500 software and services index has dropped about 13% in the past week, erasing roughly $800 billion in market value. Investors are rethinking how fast generative AI might chip away at pricing power. “What becomes increasingly clear is the disruptive power of AI,” said James St. Aubin, chief investment officer at Ocean Park Asset Management. Reuters
Wall Street’s cash session Wednesday closed with the S&P 500 dropping 0.51% and the Nasdaq sliding 1.51%. Meanwhile, the Dow climbed 0.53%, boosted by healthcare gains after Eli Lilly surged more than 10%. AMD plunged 17.3% following a weak revenue forecast that dragged down chip stocks. Jed Ellerbroek, portfolio manager at Argent Capital Management, noted the scale of AI infrastructure buildout has left “the market” struggling to price it. Josh Chastant at Boyar Value Group expressed a “very bearish view” on U.S. software, warning profit margins could face pressure. Reuters
Macro signals offered little relief. The dollar climbed to a two-week peak amid rising “risk aversion,” according to Sim Moh Siong, currency strategist at OCBC. This came after the Nasdaq slid 2.9% over the last two sessions. On top of that, Federal Reserve Governor Lisa Cook indicated she’s hesitant to support another rate cut until inflation eases. Reuters
Earnings continue to drive action beyond the major tech players. Ahead of the open, reports are expected from Linde, ConocoPhillips, Bristol Myers Squibb, Intercontinental Exchange, KKR, and Cummins. This diverse lineup could impact investor sentiment across energy, healthcare, and industrial sectors.
Amazon is also on investors’ radar Thursday, standing out among megacaps seen as barometers for the AI trade and its ripple effects. Earlier this week, Art Hogan of B. Riley Wealth pointed out the market’s growing focus on software names vulnerable to AI-driven disruption—a shift that’s expanded the theme from a handful of stocks to a wider risk assessment.
But the rebound futures often attempt after a selloff tends to be fragile in a tape like this. If more companies hike spending or hint at slower returns, investors might keep trimming their stakes in crowded “AI winners.” Any rise in yields would hit pricey growth stocks the hardest.
Traders face weekly jobless claims data at 8:30 a.m. ET, followed by the JOLTS job openings report at 10:00 a.m. ET. The Labor Department pushed back the U.S. Employment Situation report to Feb. 11.
