Alphabet, Tesla, and IBM Earnings Highlight Market Activity Ahead of ECB Rate Decision
U.S. stock futures declined on Thursday as investors processed earnings reports from Alphabet (NASDAQ:GOOG), Tesla (NASDAQ:TSLA), and IBM (NYSE:IBM) while awaiting the European Central Bank's interest rate decision. Rising geopolitical tensions in the Middle East, along with higher oil prices, contributed to cautious market sentiment. Alphabet increased its AI investment forecast for 2026 to $205 billion from $190 billion and reported negative free cash flow of $5.9 billion due to rising capital expenditures. Tesla also posted a negative free cash flow after boosting spending on AI and robotics, while IBM cut its full-year revenue growth outlook to between 4% and 5%. Analysts are closely watching whether these large investments will yield sustainable returns. The ECB is expected to keep interest rates unchanged at 2.25%, but investors remain attentive for any signals about future monetary policy adjustments as inflation remains above the central bank's target.
Topics: AI investment Alphabet ECB rate decision free cash flow IBM market sentiment Tesla