Dow Jones Falls 500 Points as Alphabet, Tesla Dive on Earnings News

U.S. stock futures plunged on Wednesday after disappointing earnings reports from major technology companies Alphabet and Tesla reignited investor concerns about heavy spending on artificial intelligence. The Dow Jones Industrial Average fell 500 points in early trading, with the S&P 500 and Nasdaq also declining sharply. Alphabet shares dropped more than 5% after the company reported higher-than-expected capital expenditures tied to AI infrastructure, while Tesla slid over 8% following weaker-than-forecast quarterly results. The selloff affected a broad range of tech and growth stocks, as traders worried that Big Tech's massive AI investments may not yield immediate returns. Oil prices added to the market's unease, with Brent crude topping $100 a barrel for the first time since August, driven by escalating Middle East attacks. The Dow futures had earlier indicated a 600-point drop before the opening bell. This earnings season has been closely watched for signs of how companies are balancing AI spending with profitability. The latest results from Alphabet and Tesla suggest that investors are growing impatient with rising costs and uncertain payoffs. Market participants now expect heightened volatility in the coming sessions, as they assess whether other tech giants will follow suit with similar spending plans. The Federal Reserve's next policy decision also remains a key focus, as higher oil prices could complicate efforts to control inflation.