U.S. stock index futures moved lower late Thursday, extending a session of sizeable declines led by technology shares. The pullback accelerated after Amazon.com announced an unexpectedly large capital spending plan for 2026, prompting investors to reassess the timing and payoff of heavy AI-related investments.
By 18:30 ET (23:30 GMT), S&P 500 futures were down 0.5% at 6,789.25 points. Nasdaq 100 futures fell 0.9% to 24,422.0, and Dow Jones futures declined 0.3% to 48,857.0.
Amazon plunges after setting elevated 2026 capex
Amazon.com Inc. was among the largest post-close decliners, sliding about 11% after reporting results for the December quarter and issuing its outlook for 2026 capital expenditures. The company said it anticipates roughly $200 billion of capex in 2026 - a figure that materially exceeds last year’s spending and analyst expectations of about $146.11 billion.
Quarterly profit came in at $1.95 per share, a slight miss versus analyst estimates, and the company’s near-term guidance also fell short of consensus. Management tied part of the outlook to elevated AI-related costs, even as its cloud unit, Amazon Web Services, continued to grow: AWS revenue rose 24% to $35.6 billion, outpacing analyst forecasts.
Despite the stronger-than-expected AWS top-line, investors focused on the outsized capex number and the uncertainty around when the increased investment in AI will translate into returns.
Wider technology sector under pressure
Following Amazon’s report, other large-cap technology names that had previously flagged elevated AI spending also softened in aftermarket trade. Microsoft, Alphabet and Meta all slipped as much as 3% after Amazon’s disclosure, reflecting a broader reassessment of the near-term profit impact from ramped-up AI expenditures.
Tech’s weakness was the principal driver of losses across main U.S. indexes. The Nasdaq Composite led declines with a 1.6% drop, the S&P 500 fell 1.3%, and the Dow Jones Industrial Average lost 1.2% on the day. The Nasdaq and S&P touched their lowest levels since late November and mid-December, respectively.
Chip shortages and labor-market signals add pressure
Investor concern was reinforced by supply-side stress in semiconductors. Qualcomm warned that a global memory-chip shortage would weigh on its business, and the stock slid 8.5%. Research from an analytics firm cited in the session indicated memory-chip prices had risen as much as 90% quarter-on-quarter so far in the current quarter, heightening worries about cost pressures across the technology supply chain.
At the same time, labor-market metrics showed signs of strain. January layoffs reported by Challenger reached their highest level since the 2009 financial crisis. Weekly initial jobless claims came in higher than expected, and job openings data for December missed forecasts. These labor-market readings complicate the outlook for economic growth and feed into investors’ calculations about future monetary policy.
Markets were also parsing the implications of Kevin Warsh, President Donald Trump’s nominee to lead the Federal Reserve, who was viewed in the market as a less-dovish option than other candidates. That perception contributed to the negative tone on Wall Street as participants weighed the path for interest rates under potential new Federal Reserve leadership.
Takeaway
Thursday’s moves underscore investor concern about the scale and timing of AI-driven capital allocation at large technology firms, and how those decisions interact with supply-chain constraints and a softening labor market. Even where revenue growth remains robust, as with AWS, the market is increasingly focused on the near-term hit to profits and cash flow from aggressive investment plans.
Key indexes and selected stock moves were:
- Nasdaq Composite: down 1.6%
- S&P 500: down 1.3%
- Dow Jones Industrial Average: down 1.2%
- Amazon: fell about 11% in aftermarket trading
- Qualcomm: slid 8.5% after a warning tied to memory-chip shortages