US stock futures dropped early Wednesday as investors turned cautious ahead of second-quarter earnings from two of Wall Street’s biggest names — Alphabet and Tesla.
Nasdaq-100 futures fell 0.8%, while S&P 500 futures slipped 0.3% and Dow Jones futures dropped 0.2%. The pullback came after a strong Tuesday session when the Nasdaq Composite gained 1.3%, the S&P 500 added 0.9%, and the Dow rose 0.7%.
Technology stocks had led the Tuesday rebound, with the Philadelphia Semiconductor Index jumping 5.2%. But that momentum faded overnight.
Alphabet and Tesla are the first two of the “Magnificent Seven” megacap companies to report this earnings season. Both reports are due after the closing bell on Wednesday.
Alphabet’s results will be closely watched for details on its AI spending. The company is one of a group of so-called AI hyperscalers — firms pouring hundreds of billions of dollars into AI infrastructure.
Tesla’s report will be scrutinized for updates on robotics, autonomous driving, and vehicle deliveries, which have been recovering from a two-year slump.
Other companies reporting Wednesday include Philip Morris International, GE Vernova, and AT&T. Chipmakers Texas Instruments and Intel report Wednesday and Thursday respectively.
Supermicro shares rose in premarket trading after the AI server company posted a record order backlog. IBM is also set to report after issuing a pre-earnings warning that caused a sharp stock drop last week.
The US-Iran conflict reached an 11th consecutive day of strikes on Wednesday. President Trump has threatened to target Iran’s nuclear infrastructure, and Iran has warned of serious retaliation.
Defense Secretary Pete Hegseth told Congress the war has cost $37.5 billion so far, with the administration seeking additional funding.
Oil prices climbed to five-week highs on supply disruption fears, raising concerns about inflation and interest rates.
On trade, President Trump appears set to replace the current 10% global tariffs with more permanent duties. A new 25% tariff on Brazilian goods took effect Wednesday, and a potential 100% tariff on imported generic drugs is under consideration.
Investors are now watching whether earnings from Alphabet and Tesla can revive the tech rally or confirm that the recovery has run out of steam.
The post Tesla and Alphabet Are About to Report — Here’s Why Markets Are on Edge appeared first on CoinCentral.
