Alphabet Inc Class CAlphabet raised capital spending forecast to $205B, raising doubts about returns on AI investments.
U.S. stocks fell as crude oil prices surged and Alphabet's earnings report sparked concerns over AI spending. The S&P 500 dropped 0.80%, the Dow fell 0.66%, and the Nasdaq 100 declined 1.20%. Alphabet shares fell more than 5% after the company raised its capital spending forecast to $205 billion from $190 billion, more than double its 2025 capital spending, raising doubts about returns on AI investments. Tesla dropped over 10% after its earnings also showed a surge in capital spending. WTI crude oil prices jumped more than 5% after Iran-backed Houthis attacked two Saudi oil tankers in the Red Sea, threatening oil shipments and expanding disruptions beyond the Strait of Hormuz. U.S. weekly initial jobless claims fell by 22,000 to 187,000, indicating a stronger labor market than expected.
Alphabet Inc Class CAlphabet raised capital spending forecast to $205B, raising doubts about returns on AI investments.
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Tesla IncTesla's earnings showed a surge in capital spending, contributing to a 10% drop.
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