Nasdaq 100 to Open 1% Lower After Alphabet and Microsoft Capex Reports

Published on 10/29/2026 · Source: ft.com

AI Summary

Summarized by AI from the source below

US tech stocks, represented by the Nasdaq 100 index, are expected to open 1% lower following earnings reports from Google parent Alphabet and Microsoft. Both companies disclosed capital expenditure (capex) figures that were lower than anticipated.

Alphabet and Microsoft’s reported capex numbers have raised concerns about AI spending levels, contributing to the expected market decline. These specific spending figures helped shape investor expectations and influenced pre-market trading activity.

This downward movement in the Nasdaq 100 due to reduced capex signals caution around AI-related investments from leading tech giants. Investors may adjust their portfolios in response to these capex trends, which directly impact future technology development and growth forecasts in the sector.

Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.

Our take

Opinion from the Newsstocks AI desk, not investment advice

The reports of lower capex from Alphabet and Microsoft have caused a negative reaction in pre-market trading for the Nasdaq 100. This signals investor caution about tech companies' investment in AI. If future earnings show increased capex or clearer growth strategies, sentiment might improve.

Key numbers

Nasdaq 100 opening change: 1% down

What could hurt

Lower than expected capex suggests concerns about AI spending and potential slower growth in tech investments.

The background

Capital expenditure (capex) is the money a company spends to buy or maintain physical assets. Changes in capex reveal how much a company invests in growth or new technologies.

Questions readers ask

Why is the Nasdaq 100 expected to open 1% lower?

The Nasdaq 100 is expected to open 1% lower after Alphabet and Microsoft reported lower than expected capital expenditures in their earnings reports.

What caused concerns about AI spending in tech stocks?

Lower than expected capital expenditure figures from Alphabet and Microsoft raised concerns about the level of AI spending.

About Alphabet Inc. (Class C) (GOOG)

Alphabet is the parent of Google, with revenue led by search and advertising plus cloud, YouTube, and AI. Class C shares (GOOG) carry no voting rights.

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