US stock futures edge higher; Tesla, Alphabet dip after Q2 earnings

U.S. stock index futures crept higher on Wednesday evening, while Alphabet and Tesla fell after second-quarter earnings from the two failed to impress markets.

Futures were muted after a mixed session on Wall Street, where technology stocks fell amid persistent concerns over bloated artificial intelligence-driven valuations.

Caution over the U.S.-Iran war also remained in play, after President Donald Trump threatened to attack civilian infrastructure in Iran and as an Iran-backed group began striking ships in the Red Sea.

S&P 500 Futures rose 0.1% to 7,547.50 points by 21:02 ET (01:02 GMT). Nasdaq 100 Futures rose 0.26% to 29,261.75 points, while Dow Jones Futures rose 0.1% to 52,510.0 points.

Alphabet, Tesla fall after Q2 earnings

Alphabet Inc (NASDAQ:GOOGL) fell 2.4% in aftermarket trade on Wednesday, after the company’s adjusted earnings per share missed estimates and as it forecast higher capital spending this year.

The Google owner hiked its capital expenditure plans for 2026 by $15 billion to a range of between $195 billion and $205 billion.

The company said demand for its AI and cloud services remained strong, which justified the increased expenditure on the fast-growing technology. Growth in Google Cloud also blew past expectations in the quarter.

But the company turned free cash flow negative for the first time in history, amid outsized spending on AI and cloud infrastructure.

The trend spooked markets over the high cost of AI– a trend that has spurred deep losses in tech shares in recent weeks.

Tesla Inc (NASDAQ:TSLA) slid nearly 4% in aftermarket trade after the electric vehicle’s bottom-line figures missed expectations in the June quarter.

The company also turned cashflow negative in the quarter, amid outsized spending on AI and tighter margins in its core automotive business.

While the company’s core EV sales did improve substantially in the quarter, its overall earnings still lagged, especially as its pivot into an AI and robotics company spurred heightened capital spending.