Nasdaq Futures Slip as Chip Rally Falters Ahead of Alphabet Earnings

September Nasdaq 100 E-Mini futures (NQU26) are down -0.52% this morning as a rally in chip stocks lost momentum ahead of earnings from AI hyperscaler Alphabet.

Chip and AI infrastructure stocks fell in pre-market trading as investors turned cautious ahead of Alphabet’s results. The earnings report will arrive just as chipmakers, the S&P 500’s biggest driver of 2026, are caught in a wave of intense volatility amid concerns that the pace of AI spending cannot be sustained. Against that backdrop, investors will closely watch Alphabet’s guidance on artificial intelligence spending.

Higher oil prices also weighed on sentiment. The price of WTI crude jumped over +3% on Wednesday as the U.S. and Iran downplayed the prospects for talks and disruptions to global supplies continued to grow. The U.S. military carried out an 11th consecutive day of strikes on Iran in an effort to weaken the country’s ability to threaten commercial shipping in the Strait of Hormuz. Meanwhile, a threat by Yemen’s Houthi militants to blockade Saudi Arabia has begun to materialize as at least two oil tankers made U-turns in the Red Sea, while Ukrainian attacks on Russian shipping in the Black Sea have disrupted operations at a key pipeline there.

In yesterday’s trading session, Wall Street’s major indexes closed higher. Chip and AI infrastructure stocks rallied, with Sandisk (SNDK) jumping over +14% to lead gainers in the S&P 500 and Micron Technology (MU) surging more than +12%. Also, Nebius Group N.V. (NBIS) popped over +18% and was the top percentage gainer on the Nasdaq 100 after Nvidia disclosed a 9.3% passive stake in the neocloud operator. In addition, Coinbase Global (COIN) climbed more than +9% after a key hurdle facing the Clarity Act was reportedly cleared. On the bearish side, Danaher (DHR) tumbled about -11% and was the top percentage loser on the S&P 500 after the life sciences company issued below-consensus Q3 core revenue growth guidance.

“Investors are becoming more selective toward companies tied to artificial intelligence after strong gains. Profit growth still anchors the longer-term market outlook,” according to Rob Haworth at U.S. Bank Asset Management.

Meanwhile, the Republican-controlled U.S. House of Representatives on Tuesday passed a short-term funding measure to prevent a possible government shutdown ahead of the November midterm elections by keeping federal agencies funded through December 4th. The bill now heads to the Senate.

In tariff news, U.S. President Donald Trump said on Tuesday that generic drug manufacturers will have to move production to the U.S. or face a 100% tariff starting in August 2028, rising to 200% one year later.

Second-quarter corporate earnings season rolls on, with all eyes today on Magnificent Seven stalwarts Alphabet (GOOGL) and Tesla (TSLA). The Google parent and the EV maker are scheduled to release their quarterly results after the bell, kicking off the megacap reporting season. Investors will look to Alphabet’s earnings for updates on spending and semiconductors after a report said earlier this week that the company was developing a server chip designed to optimize its Gemini AI model. When it comes to Tesla, investors will be watching for details on how quickly CEO Elon Musk plans to expand the robotaxi service, as well as updates on the company’s humanoid robot, Optimus. Prominent companies such as Texas Instruments (TXN), International Business Machines (IBM), GE Vernova (GEV), AT&T Inc. (T), and ServiceNow (NOW) are also set to report their quarterly figures today. According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +26% jump in quarterly earnings for Q2 compared to the previous year.

On the economic data front, investors will focus on the EIA’s weekly crude oil inventories report, which is set to be released in a couple of hours. Economists expect this figure to be -2 million barrels, compared to last week’s value of -1.7 million barrels.

U.S. rate futures have priced in a 75.9% chance of no rate change and a 24.1% chance of a 25 basis point rate hike at next week’s monetary policy meeting.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.64%, up +0.17%.

The Euro Stoxx 50 Index is up +0.28% this morning, supported by gains in energy stocks and some positive corporate news. Energy stocks led the gains on Wednesday as oil prices climbed amid mounting fears of further supply disruptions. At the same time, technology stocks fell as caution prevailed ahead of Alphabet’s earnings. Data from the Office for National Statistics released on Wednesday showed that the U.K.’s annual inflation rate eased in June to its lowest level in more than a year as gasoline prices fell, increasing the likelihood that the Bank of England will keep its key interest rate unchanged next week. Meanwhile, Eurozone government bond yields rose on Wednesday as surging oil prices heightened the risk of elevated inflation and increased the likelihood that the European Central Bank will raise interest rates later this year. The ECB is widely expected to keep interest rates unchanged on Thursday, but may signal that further increases in borrowing costs are possible. In corporate news, Airbus SE (AIR.FP) climbed over +6% after the planemaker launched a 5 billion euro ($5.7 billion) share buyback program and announced new medium-term targets, including nearly doubling its profits by 2029. Also, Hiab (HIAB.H.DX) rose more than +8% after the load-handling equipment maker posted higher Q2 orders.

U.K. CPI and Core CPI data were released today.

U.K. June CPI rose +0.1% m/m and +2.6% y/y, compared to expectations of +0.1% m/m and +2.7% y/y.

U.K. June Core CPI rose +2.6% y/y, stronger than expectations of +2.5% y/y.

Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed up +0.07%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.18%.

China’s Shanghai Composite Index closed just above the flatline today. Non-ferrous metal stocks outperformed on Wednesday as gold prices climbed above $4,100 per troy ounce on dip-buying. Financial and consumer stocks also advanced. Limiting gains, semiconductor and other AI-related stocks retreated as investors locked in some profits following the previous session’s sharp rally. Meanwhile, China’s government spending fell in June by the most since October, suggesting that fiscal policy tightened further despite growing calls for additional support as economic growth slows. A broad measure of government spending sank 11.9% last month from a year earlier, according to Bloomberg calculations based on Ministry of Finance data released on Wednesday. In other news, optical transceiver maker Zhongji Innolight plans to raise more than $7 billion in a Hong Kong public offering that would mark the city’s largest listing so far this year. In corporate news, Topsports International Holdings tumbled over -24% in Hong Kong after Nike said it would steer consumers toward its official channels. Investors are now shifting their focus to a late-July meeting of the Politburo, China’s top decision-making body, where policymakers typically review the economy and fine-tune policy to support growth.

Japan’s Nikkei 225 Stock Index gave up earlier gains and closed lower today. The Nikkei initially climbed as much as +2.05% as chip and other AI-related stocks jumped, tracking overnight gains in their U.S. peers, but the benchmark turned lower in the afternoon session as tech stocks pared most of their gains amid caution ahead of Alphabet’s earnings. Losses in retail and healthcare stocks also weighed on the benchmark index. Meanwhile, Japanese government bond yields advanced on Wednesday as mounting inflation and fiscal concerns overshadowed strong demand at a 40-year debt auction. Bloomberg reported on Wednesday that Bank of Japan officials are open to raising interest rates more aggressively than economists generally expect, with the yen’s continued weakness adding to upside risks to inflation. The yen was little changed in Asian trading after weakening past 163 per dollar on Tuesday for the first time since 1986, putting Japanese authorities’ resolve to intervene to the test. Two senior Japanese officials signaled on Wednesday that authorities stand ready to intervene in the currency market if necessary. On the economic front, data showed on Wednesday that Japan’s exports rose more than expected in June, driven by strong demand for electronic parts, nonferrous metals, and automobiles. At the same time, Japan’s imports surged to a record high last month as a weaker yen and soaring oil prices pushed up import costs, leaving a trade deficit of 406.9 billion yen. Investor attention for the remainder of the week is on Japan’s National Core CPI for June and flash PMIs for July. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -1.45% to 32.59.

The Japanese June Trade Balance stood at -406.9 billion yen, weaker than expectations of -120 billion yen.

The Japanese June Exports rose +19.3% y/y, stronger than expectations of +18.6% y/y.

The Japanese June Imports rose +25.4% y/y, stronger than expectations of +21.0% y/y.

Pre-Market U.S. Stock Movers

Chip and AI infrastructure stocks retreated in pre-market trading, with Intel (INTC) falling over -3% and Micron Technology (MU) dropping more than -2%.

Pegasystems (PEGA) tumbled more than -13% in pre-market trading after the software firm posted downbeat Q2 results.

GE Vernova (GEV) sank over -5% in pre-market trading after the company reported weaker-than-expected Q2 adjusted core earnings and said global tariffs would raise its costs by about $100 million to $200 million in 2026.

Super Micro Computer (SMCI) popped over +16% in pre-market trading after the AI server maker doubled its previous FQ4 gross margin guidance.

AT&T (T) rose more than +3% in pre-market trading after the wireless carrier posted better-than-expected Q2 adjusted EPS.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Wednesday - July 22nd

Alphabet (GOOGL), Tesla (TSLA), Philip Morris International (PM), GE Vernova (GEV), Texas Instruments (TXN), International Business Machines (IBM), AT&T Inc. (T), ServiceNow (NOW), CSX Corporation (CSX), CME Group (CME), Moody's (MCO), Kinder Morgan (KMI), United Rentals (URI), TE Connectivity (TEL), Westinghouse Air Brake Technologies (WAB), Waste Connections (WCN), Northern Trust (NTRS), Crown Castle (CCI), Raymond James Financial (RJF), Teledyne Technologies (TDY), Las Vegas Sands (LVS), Otis Worldwide (OTIS), AvalonBay Communities (AVB), Equity Residential (EQR), Southwest Airlines Co. (LUV), PulteGroup (PHM), Rollins (ROL), Packaging Corporation of America (PKG), Reliance (RS), Medpace Holdings (MEDP), Pinnacle Financial Partners (PNFP), Globe Life (GL), RenaissanceRe Holdings (RNR), RPM International (RPM), Equity LifeStyle Properties (ELS), Knight-Swift Transportation Holdings (KNX), Graco (GGG), Stifel Financial (SF), EastGroup Properties (EGP), Molina Healthcare (MOH), SEI Investments Company (SEIC), Old National Bancorp (ONB), First Industrial Realty Trust (FR), First American Financial (FAF), Essential Properties Realty Trust (EPRT), Taylor Morrison Home (TMHC), Wyndham Hotels & Resorts (WH), WEX Inc. (WEX), RLI Corp. (RLI), Sonoco Products Company (SON), Iridium Communications (IRDM), Fulton Financial (FULT), Travel + Leisure Co. (TNL), Texas Capital Bancshares (TCBI), Oceaneering International (OII), Viking Therapeutics (VKTX), Badger Meter (BMI), First BanCorp. (FBP), Cal-Maine Foods (CALM), Cathay General Bancorp (CATY), Liberty Energy (LBRT), SL Green Realty (SLG), CVB Financial (CVBF), QuantumScape (QS), BankUnited (BKU), The St. Joe Company (JOE), First Merchants (FRME), Kaiser Aluminum (KALU), First Bancorp (FBNC), Enterprise Financial Services (EFSC), Banner (BANR), Getty Realty (GTY), NETSTREIT (NTST), Stewart Information Services (STC), ARMOUR Residential REIT (ARR), Goosehead Insurance (GSHD), Live Oak Bancshares (LOB), Pathward Financial (CASH), Century Communities (CCS), Healthcare Services Group (HCSG), QCR Holdings (QCRH), Origin Bancorp (OBK), Tompkins Financial (TMP), Preferred Bank (PFBC), Univest Financial (UVSP), Old Second Bancorp (OSBC), Five Star Bancorp (FSBC), Horizon Bancorp (HBNC), Eagle Bancorp (EGBN), HomeTrust Bancshares (HTB), Third Coast Bancshares (TCBX), Bar Harbor Bankshares (BHB), Northrim BanCorp (NRIM), Brandywine Realty Trust (BDN), ChoiceOne Financial Services (COFS), Colony Bankcorp (CBAN).