Nasdaq set to lead decline as Alphabet spending plans spook investors

US stocks have been called sharply lower on Thursday after jobs cuts in the past month were higher than expected, while Google parent Alphabet is set to lead a further tech decline after its earnings overnight. 

Futures for the S&P 500 were down 0.7% an hour and a half before the opening bell, with sharper falls expected on the Nasdaq, where futures pointed to a drop of 1.1%, and a smaller 0.4% for the Dow Jones. 

This followed a mixed session the day before, when the Nasdaq slid 1.5% to 22,905, weighed down by a continued selloff in software and tech stocks, led by Advanced Micro Devices. The S&P dipped 0.5% to 6,883 and the Russell 2000 fell 0.9% to 2,624.

In contrast, the Dow climbed 0.5% to 49,501, buoyed by defensive and industrial shares.

The dollar was continuing to regain health, with the DXY index up 0.2% at 97.8. But in crypto markets, bitcoin plunged to levels last seen in over a year, down 8.5% to $69.5k.

Silver also tumbled, down 13% to $76.6 an ounce, while gold was down 3% at $4,818/oz. Oil was also weaker, with WTI crude down 2.3% at $63.66 a barrel.

Alphabet reported better-than-expected quarterly results, but the market took fright at an expected increase in capex for the year ahead. 

The shares are down 4% in premarket trading (though still up 140% since last April). 

The Google owner now expects to spend between $175 billion and $185 billion in 2026, nearly double last year’s level and far above what analysts had pencilled in.

In macroeconomic news, Challenger job cuts for January came in at 108.4K, up from 35.55K and well above the 43K expected.

Also due are initial jobless claims and continuing claims, along with the December JOLTS report.