NEW YORK: U.S. equity futures slipped on Wednesday evening as investors weighed fresh corporate earnings, artificial intelligence spending concerns, and rising oil prices.

Futures tied to the Dow Jones Industrial Average lost 69 points, or 0.1%, while S&P 500 futures dropped 0.2% and Nasdaq 100 futures fell 0.3%. In regular trading, the Dow fell 6.06 points, or 0.01%, the broad market S&P 500 lost 0.14%, and the tech-heavy Nasdaq Composite dropped 0.57%.

The Capital Expenditure Conundrum

Alphabet shares slid 3% in extended trading after the Google parent lifted its forecast for 2026 capital expenditures to as high as $205 billion, pointing to strong artificial intelligence demand. This increase comes as investors have grown increasingly circumspect in recent months about hyperscalers’ spending around the AI effort.

“Without an abundance of strong earnings as a distraction, investors’ attention has gravitated toward the war again,” stated Hardika Singh, economic strategist at Fundstrat. “Those who had previously thought that oil prices have peaked are now being forced to redo the inflation math all over again. Now more than ever, pricing power remains key for companies if they want investors to reward them.”

Geopolitical Headwinds and Inflationary Pressures

Traders are also keeping a watchful eye on oil prices, which moved higher Wednesday after the U.S. launched another round of strikes against Iran and Secretary of State Marco Rubio said Tehran was “not serious about talks.” Investors are watching crude closely, as a sustained increase could keep inflation elevated and complicate the Federal Reserve’s interest rate path.

After-Hours Market Movers

Beyond the macroeconomic landscape, individual corporate narratives drove significant after-hours volatility. Rollins dropped about 10% after second-quarter results fell short of Wall Street’s expectations. Conversely, Medpace Holdings soared approximately 19% after second-quarter results topped Wall Street analysts’ consensus estimates, demonstrating that underlying business strength can still command a premium in a turbulent market.

On Thursday, investors are looking forward to another busy day of earnings, with Dow, American Airlines, T-Mobile, Union Pacific, and Norfolk Southern on deck before the bell, while Intel will report after the market close. Weekly jobless claims will also be released at 8:30 a.m. ET, providing further intelligence on the labor market's resilience.