U.S. stock futures suggested a mixed start to trading on Wall Street as investors evaluated major technology earnings and the continued volatility in software stocks. Alphabet (NASDAQ:GOOG) attracted particular attention after indicating it could significantly increase investment to support its artificial intelligence expansion, while market focus is also shifting toward results from e-commerce giant Amazon (NASDAQ:AMZN), scheduled after the market close. Meanwhile, investors are monitoring key monetary policy decisions in Europe, and precious metals prices have retreated.
U.S. futures show mixed direction
By 02:44 ET, futures tied to the Dow Jones Industrial Average were down 39 points, or 0.1%. S&P 500 futures edged up 6 points, or 0.1%, while Nasdaq 100 futures rose 65 points, or 0.3%.
Major U.S. indices finished the previous session with mixed results as investors searched for signs that software stocks had reached a bottom following recent losses. Companies linked to artificial intelligence hardware also faced selling pressure.
The technology sector, widely regarded as a primary beneficiary of the AI boom, has been hit by concerns that the rapid development of artificial intelligence could disrupt parts of the industry itself. By Tuesday, an index tracking software stocks had recorded its weakest three-month performance relative to the S&P 500 since 2002.
While investors are attempting to identify which companies could recover from recent declines, analysts cited by Reuters noted that the sector is increasingly divided between firms positioned to benefit from AI growth and those likely to struggle.
Alphabet signals aggressive AI investment plans
Alphabet has strengthened its position in the race to dominate artificial intelligence following strong earnings from Google’s parent company.
Previously viewed as lagging behind ChatGPT developer OpenAI, analysts suggested Alphabet’s strong quarterly performance indicates the company is starting to generate measurable returns from its extensive AI investments. In contrast, OpenAI continues to operate without profitability.
“Overall, we’re seeing our AI investments and infrastructure drive revenue and growth across the board,” CEO Sundar Pichai said.
Alphabet’s Gemini AI platform, a direct competitor to ChatGPT, reached 750 million monthly active users during the December quarter, approaching the more than 800 million users reported by ChatGPT in October.
Company executives indicated that capital spending could potentially double this year, rising to between $175 billion and $185 billion, as Alphabet accelerates construction of advanced data centres and semiconductor infrastructure supporting AI systems. Although initial investor reaction to higher spending was cautious, strong performance in Google’s cloud division and other business segments helped ease concerns.
Alphabet shares were slightly lower during extended trading but recovered from earlier declines.
Amazon results expected to highlight AI strategy
Investor attention is now turning to Amazon, which has also placed artificial intelligence at the centre of its long-term growth strategy.
Amazon Web Services remains a core driver of revenue, but the company’s progress in artificial intelligence development has become a critical focus for investors. Some analysts have viewed Amazon as trailing competitors in AI innovation, a perception that has weighed on market sentiment toward the stock. Despite its position among large-cap technology leaders that have powered equity market gains for years, Amazon’s share price has declined by more than 1% over the past 12 months.
However, in October, Amazon reported revenue growth supported by AI-related services and announced plans to expand its global data centre capacity.
For the key holiday quarter, Amazon is expected to report a 21% increase in AWS net sales, excluding currency impacts. Overall revenue is projected to reach $211.49 billion, with earnings per share estimated at $1.96, according to Bloomberg consensus forecasts.
ECB and BOE policy decisions in focus
Beyond corporate developments, attention is turning toward monetary policy decisions in Europe. The European Central Bank is widely expected to leave interest rates unchanged at 2% during Thursday’s meeting, marking the fifth consecutive decision to hold rates steady. However, the sharp decline in eurozone inflation in January may raise concerns among policymakers.
Recent data showed eurozone consumer price inflation slowed to 1.7% year-on-year in January from 1.9% in December, falling below the ECB’s 2% inflation target.
Economists at Deutsche Bank, including Mark Wall and Peter Sidorov, wrote in a client note that while interest rates are expected to remain unchanged in 2026, risks continue to lean toward “further easing given the expected undershoot of the inflation target.”
They added that developments such as the strengthening euro against a weaker U.S. dollar highlight this risk, although the argument for additional rate cuts “has not been proven yet.”
The Bank of England is also expected to keep its benchmark rate unchanged at 3.75%, with analysts pointing to ongoing inflation pressures despite emerging signs of a softer labour market.
Precious metals retreat as dollar strengthens
Gold prices declined after reversing earlier gains, while silver dropped sharply following a brief rebound earlier in the week.
Weakness in metals resumed as the U.S. dollar strengthened ahead of the European central bank meetings, putting pressure on commodity markets.
Silver recorded the steepest losses among precious metals, with spot prices falling as much as 16% to $73.5565 per ounce during Asian trading. Silver futures for March delivery dropped by a similar margin, reaching an intraday low of $73.383 per ounce.
The sell-off began in Chinese markets, where a sharp decline in Shanghai silver futures spread to global spot trading. The downturn erased much of silver’s recent recovery and pushed prices closer to lows reached last week.
“Even as prices of precious metals are now less elevated following the correction, sensitivity to the [dollar], yield repricing, and uncertainty around Fed policy under new leadership remains high. While positioning has likely reset to some extent, confidence may not have fully restored, pointing to a potential period of choppier, two-way trading,” Christopher Wong, FX strategist at OCBC said.