US stock futures edged lower on Wednesday as investors pulled back from semiconductor shares before Alphabet and Tesla open the first major test of the second-quarter Big Tech earnings season.
Nasdaq 100 contracts led the retreat, while S&P 500 and Dow futures also slipped after Tuesday’s chip-led rebound.
The market is asking whether billions of dollars committed to data centres, AI models and robotics are beginning to produce adequate returns.
Super Micro’s surge offered one encouraging signal, but oil near six-week highs and widening threats to Middle East shipping kept inflation and interest-rate risks firmly in view before the bell.
5 things to know before Wall Street opens
1. Alphabet must prove AI spending is paying off
Alphabet reports after the close, with investors focused on Google Cloud growth, capital expenditure and whether delays to a strategically important AI model have weakened its competitive position.
The concern is no longer simply how much the company is spending, but whether those outlays are translating into faster revenue and stronger returns.
A cautious spending signal could hit chip suppliers that have benefited from hyperscaler demand.
2. Tesla faces a cash-flow and robotics test
Tesla also reports after Wednesday’s close.
The company delivered 480,126 vehicles in the second quarter, but attention is likely to centre on automotive margins, free cash flow and the cost of expanding its robotaxi, AI and humanoid-robot programmes.
Investors will want evidence that heavy investment can support earnings rather than create another prolonged cash drain.
3. Semiconductor shares remain under pressure
Texas Instruments slipped before its own results, tracking weakness across the chip sector.
Swissquote strategist said another semiconductor sell-off could follow if Big Tech shows signs of slowing capital spending before AI investments produce clearer returns.
At 5:39 am in New York, Nasdaq 100 futures were down 0.71%, compared with a 0.29% decline in S&P 500 contracts.
4. Super Micro offers a rare bright spot
Super Micro Computer surged after saying fourth-quarter gross margin should reach 15% to 17%, almost twice its previous forecast.
The AI-server maker also disclosed more than $60 billion of new orders, creating a record backlog, although revenue is expected near the lower end of its $11 billion to $12.5 billion guidance range.
The update suggests demand remains strong, but execution and profitability still matter.
5. Middle East tensions complicate the Fed outlook
Brent traded near six-week highs as threats to shipping intensified around the Strait of Hormuz and Bab el-Mandeb.
Secretary of State Marco Rubio said Washington remained open to diplomacy, but viewed Tehran as insufficiently serious about talks.
The Fed is expected to hold rates next week, yet higher energy costs could keep policymakers cautious and limit the relief from recent softer inflation data.
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