Alphabet's fourth-quarter earnings and revenue beat Wall Street expectations, with its cloud unit seeing a nearly 48% revenue increase year-over-year. However, the tech giant's capital expenditure plans for 2026, estimated between $175 billion and $185 billion, have investors worried. This significant increase in spending has led to a 3% drop in Alphabet's stock price during extended trading. Meanwhile, the broader market sentiment around AI stocks has been negative, with Advanced Micro Devices (AMD) shares plunging 17.3% due to a disappointing first-quarter forecast. Other AI-related companies, such as Broadcom and Oracle, also experienced declines. The tech-heavy Nasdaq Composite lost 1.51%, and the S&P 500 retreated 0.51%, marking its fifth negative session in six. Despite this, the Dow Jones Industrial Average rose 0.53% thanks to the performance of Amgen and Honeywell. Oil prices slipped around 1% following reports of potential talks between the U.S. and Iran in Oman. In other oil news, Venezuela assured China that its oil pricing would not be influenced by the U.S., and Russia denied plans to stop oil purchases from India, despite Trump's suggestions. Panama faces a 'heavy price' if it doesn't change course, as the Supreme Court ruled to void Hong Kong-based CK Hutchison's license to operate ports at either end of the canal. Senator Tim Scott believes Powell didn't commit a crime during his Senate testimony, while Senator Thom Tillis continues to block Kevin Warsh's Fed chair nomination until an investigation into Powell concludes. The U.S. is planning critical mineral price floors with Mexico, the European Union, and Japan to reduce dependence on China. Major U.S. indexes sold off on Wednesday, with the S&P 500 experiencing back-to-back losses due to tech stocks. The pan-European Stoxx 600 was mostly unchanged, but shares of Denmark-listed Novo Nordisk plunged 17.2%. Analysts express concerns about AMD's profitability, and Chinese businesses are focusing on AI tools that can help them navigate a challenging economic environment rather than solely on the intelligence of the AI itself.
