US Futures Fall as Amazon's $200B Capex Spooks Tech Sector

US Futures Decline on Tech Sector Pressure

U.S. stock index futures fell Thursday evening, driven by a sell-off in technology stocks following Amazon's aggressive capital expenditure forecast. The e-commerce giant's announcement amplified investor concerns about the high costs associated with artificial intelligence development across the industry.

Market Overview and Key Figures

In after-hours trading, S&P 500 Futures dropped 0.5%, Nasdaq 100 Futures slid 0.9%, and Dow Jones Futures decreased by 0.3%. The decline extends a broader rout on Wall Street, where the Nasdaq Composite had previously fallen 1.6%, hitting its lowest level since late November.

Amazon's Capex Outlook Shakes Investors

Amazon.com Inc (AMZN) shares plummeted 11% after the company projected it would spend approximately $200 billion in capital expenditures in 2026, far exceeding analyst estimates of $146.11 billion. The substantial spending plan, aimed at bolstering its AI capabilities, also impacted other tech leaders like Microsoft, Alphabet, and Meta, which saw their shares fall in sympathy amid growing uncertainty over the timeline for AI returns.

Summary and Outlook

The market's reaction highlights growing investor apprehension over massive, front-loaded AI investments. Traders will continue to monitor how these expenditures affect corporate profitability and whether the long-term benefits of AI can justify the significant short-term costs.

FAQ

Q: Why did Amazon's stock fall sharply?
A: Amazon's stock fell 11% after it announced a much higher-than-expected capital expenditure plan of $200 billion for 2026, primarily for AI infrastructure.

Q: How did this affect the broader tech market?
A: It triggered a wider sell-off in tech stocks, as investors became concerned about the high costs and uncertain return on investment for AI across the industry.

Source: Investing.com