U.S. stock futures retreated from record highs on Tuesday after Alphabet announced an $80 billion equity raising plan to fund its aggressive artificial intelligence infrastructure push, unsettling investors already scrutinizing Big Tech's spending habits. The news sent Alphabet shares down 2% in premarket trading and dragged major indexes lower, with Dow futures falling 210 points (0.4%), S&P 500 futures dipping 0.2%, and Nasdaq 100 futures broadly flat.
The capital raise comprises $30 billion in public offerings, $40 billion via an at-the-market program, and a $10 billion private placement from Berkshire Hathaway at a discount—$5 billion in Class A shares and $5 billion in Class C shares. Alphabet cited demand for its AI products that is outpacing available capacity, having already guided for $180–$190 billion in capital expenditures in 2026. “A clear sign that the AI arms race is moving into a more capital-hungry phase,” said Hargreaves Lansdown analyst Matt Britzman, noting that the $80 billion figure is less than 2% of Alphabet’s $4.6 trillion market cap. He added that the days of tech giants operating as “capital-light free cash flow machines” appear to be over.
Amid the risk-off mood, Bitcoin fell 2.90% to $69,413, after all three major indexes had closed at record highs on Monday.
Other market movers provided bright spots. Hewlett Packard Enterprise surged 27% in premarket after a standout second quarter: adjusted EPS of $0.79 beat estimates by $0.26, and revenue rose 40% year-over-year to $10.68 billion, driven by 148% growth in Networking and 23% in Cloud and AI. The company raised its full-year 2026 adjusted EPS outlook to $3.35–$3.45 (consensus $2.43) and lifted free cash flow guidance to $3.5 billion. HPE also announced a board member from Elliott Investment Management and introduced a FY2027 growth framework.
Marvell Technology jumped 23% after unveiling the Teralynx T100, the industry’s first 102.4 Tbps AI-optimized switch silicon, which uses up to 25% less power than competing products and will begin customer sampling this quarter. The company expects FY2027 revenue to grow roughly 40% to nearly $11.5 billion, after 42% growth in FY2026.
Microchip Technology rose 4% after projecting 65% growth in its Data Center Solutions unit to around $500 million in 2026 and announcing selective price increases. On the losing side, Nubank fell 4% after appointing a new CFO, and Credo Technology dropped 3% despite beating earnings estimates.
Oil prices fell around 1%—Brent at ~$93 and WTI at $91—as investors watched U.S.-Iran peace talk developments. The 10-year Treasury yield edged 2 basis points lower to 4.44%, and the dollar index slipped 0.1%.
