Morning Movers: Stock futures lower as investors digest megacap tech earnings

Stock futures are lower as investors digest the first wave of megacap technology earnings, with concerns over accelerating artificial intelligence spending outweighing otherwise solid quarterly results. Dow, S&P 500 and Nasdaq futures are all in negative territory before the opening bell, while Treasury yields and oil prices are climbing, adding pressure to equity markets. Alphabet and Tesla set the tone for the session after reporting second quarter results late Wednesday. Alphabet posted record growth in its cloud business and topped earnings expectations, but investors focused on the company's increased capital expenditure outlook as it ramps up AI investments. Tesla also came under pressure after reporting negative free cash flow for the first time in more than two years, reinforcing concerns about margins and the cost of its AI and autonomous driving initiatives. The market's attention has shifted from whether big tech can deliver earnings growth to whether the billions of dollars being poured into AI infrastructure will generate sufficient returns. Investors will continue to monitor upcoming results from Intel and other technology companies for additional insight into.