US stock futures edged lower on Wednesday as investors prepared for a packed earnings calendar led by several of the technology sector’s biggest names, while rising oil prices and escalating tensions in the Middle East added another layer of uncertainty to global markets.
Market participants are looking to results from Alphabet, Texas Instruments and Tesla for fresh indications about artificial intelligence spending, semiconductor demand and the outlook for some of the market’s most closely watched companies.
Futures soften ahead of earnings
Futures tied to the major US equity indices traded modestly lower before the opening bell as investors adopted a cautious stance ahead of key corporate announcements.
The previous session ended higher on Wall Street, with technology shares driving gains despite rising oil prices, which have strengthened expectations that the Federal Reserve may keep interest rates higher for longer.
Semiconductor stocks led Tuesday’s rally, with the Philadelphia Semiconductor Index advancing more than 5%, its strongest daily performance in a month.
Alphabet results expected to test AI investment narrative
Alphabet (NASDAQ:GOOG) is due to report quarterly earnings after US markets close, with investors focusing on whether the company will continue increasing investment in artificial intelligence infrastructure.
The technology giant has committed billions of dollars to expanding data centre capacity and semiconductor infrastructure alongside other AI-focused hyperscalers. While those investments are expected to support long-term growth, investors remain focused on the timeline for generating meaningful financial returns.
BofA Securities said accelerating AI demand, stronger memory chip pricing and recent financing activity could prompt Alphabet to increase its planned 2026 capital expenditure range by around 5% to between $190 billion and $200 billion.
The investment bank added that “see Alphabet well positioned to drive outsized growth [and] cloud margin upside given favorable AI positioning across models, silicon, consumer [and] enterprise distribution.”
According to Wall Street estimates referenced by BofA Securities, Alphabet is expected to report second-quarter revenue of approximately $101 billion and earnings per share of $2.90.
Texas Instruments offers insight into chip demand
Texas Instruments (NASDAQ:TXN) is also scheduled to publish quarterly results, providing investors with another important measure of conditions across the semiconductor industry.
Chip manufacturers continue to benefit from substantial investment in artificial intelligence infrastructure, with industry earnings expected to significantly outperform the wider market.
Texas Instruments has guided for second-quarter revenue of between $5 billion and $5.4 billion and earnings per share ranging from $1.77 to $2.05. As one of the world’s leading analogue semiconductor manufacturers, its results are widely viewed as an indicator of broader demand across the chip sector.
Tesla investors focus on AI spending
Tesla (NASDAQ:TSLA) is also due to release earnings after the closing bell, with analysts expecting the electric vehicle manufacturer to report its first quarterly cash burn in more than two years.
The company’s investment strategy has increasingly shifted towards artificial intelligence, autonomous driving and robotics, with spending on AI infrastructure expected to reach approximately $25 billion this year.
Investors continue to monitor whether these investments will create meaningful long-term revenue streams through products such as robotaxis and humanoid robots, particularly after several development timelines were delayed.
Oil prices remain near recent highs
Oil prices extended recent gains after the United States carried out another round of military strikes against Iranian targets, while continued disruption risks across Middle Eastern shipping routes supported energy markets.
Brent crude climbed above $94 per barrel and US West Texas Intermediate traded above $87, with both benchmarks on course for a fourth consecutive daily advance and remaining close to their highest levels in around six weeks.
The combination of stronger energy prices and geopolitical uncertainty continues to influence investor sentiment as markets await major corporate earnings and further signals on monetary policy.