Key facts
- U.S. stock index futures declined ahead of Big Tech earnings reports from Alphabet and Tesla.
- Investors are scrutinizing AI investment returns and potential cash burn from tech giants.
- Chip stocks, including Texas Instruments, showed weakness, while Super Micro Computer surged on strong orders.
- Middle East conflict and Houthi threats are impacting oil prices and shipping routes.
- Japan's yen hit a 40-year low against the dollar.
- The Federal Reserve is expected to hold interest rates steady.
U.S. stock index futures edged lower as investors awaited the first wave of Big Tech earnings reports, with the AI-driven rally showing signs of faltering amid volatility in semiconductor stocks. Alphabet and Tesla are set to report, with investors focused on AI investment returns and potential cash burn. Concerns linger over Alphabet's AI model launch delays and Tesla's expected cash burn. Texas Instruments saw a premarket decline, reflecting broader chip stock weakness. The Middle East conflict, including threats to shipping by Yemen's Houthi militia, has disrupted energy chokepoints, keeping oil prices near six-week highs. Japan's yen hit a 40-year low against the dollar, influenced by rising crude prices and U.S. tariff threats. The Federal Reserve is widely expected to hold interest rates steady.