Stocks pulled back on Wednesday as investors braced for Alphabet’s earnings report, seen as a key test of whether massive spending on artificial intelligence by major tech firms is paying off. The Nasdaq 100’s two-day rally stalled, with futures slipping 0.8%. Asian markets like South Korea’s Kospi gave up early gains, and Europe’s Stoxx 600 tech sector underperformed. The mood reflects growing concern about whether AI-driven growth can be sustained and if results may fall short of expectations.
Market analysts on The Opening Trade examined the forces behind the selloff, pointing beyond tech to geopolitical worries in the Middle East and fresh tariff threats on generic drugs from Trump. With a packed earnings calendar ahead, investors are preparing for more swings as they gauge corporate profitability and the broader economic picture. The uncertainty underscores how dependent recent market gains have been on tech optimism.