Futures Edge Higher as AI Capex Boom Lifts Infrastructure Stocks; Asia Tech Rout Spreads

Pre-Market Setup: Mixed Signals as Markets Digest AI Spending Surge

S&P 500 futures and Nasdaq 100 futures climbed 0.29% and 0.45%, respectively, while Dow Jones Industrial Average futures added 6 points, or 0.01%. The modest gains mask a deeper market divergence: infrastructure stocks riding a wave of massive AI capital expenditure announcements, while software and richly-valued tech names face selling pressure.

The AI Capex Catalyst Fuels Infrastructure Rally

Alphabet projected a sharp increase in artificial intelligence spending and called for 2026 capital expenditures of up to $185 billion. This aggressive capex guidance is reshaping sector leadership. Nvidia and Broadcom rose following news of Alphabet's spending plans, boosting hopes for the AI trade. Broadcom stock rose 5% before the bell on Thursday following Alphabet's capital expenditure news, which surpassed analysts' expectations, with Google's parent company forecasting 2026 capital expenditures of $180 billion.

However, not all chipmakers benefited. Qualcomm slid 9% after posting a weaker-than-expected forecast because of a global memory shortage.

Earnings Movers Set Tone for Session

E.l.f. Beauty lifted its full-year 2026 sales outlook to a range of $1.6 billion to $1.61 billion from its previous range of $1.55 billion to $1.57 billion, with the company seeing greater earnings per share of $3.05-$3.10, an increase from the previous range of $2.80-$2.85. The stock soared by as much as 8% in premarket trading on Thursday.

Asia Tech Contagion Spreads; Valuations Under Pressure

A slump in technology stocks snowballed into Asia as mounting anxiety over frothy valuations and massive artificial intelligence spending drove investors to trim exposure. MSCI's gauge of Asian tech shares slid on Thursday for a fifth time in six sessions with Samsung Electronics Co. and SoftBank Group Corp. among the losers. South Korea's Kospi Index — a poster child for AI investments — led the losses, dropping 3.9%.

Critical Jobs Report Looms; Employment Data Delayed

The Employment Situation release for January 2026 will not be released as scheduled on Friday, February 6, 2026. The release will be rescheduled upon the resumption of government funding. This uncertainty adds volatility to the week's schedule, leaving investors focused on earnings and economic data instead.

Key Takeaway

Thursday's pre-market action reflects a market in transition: AI infrastructure beneficiaries gaining momentum on massive capex announcements, while software and overvalued growth names face persistent selling. The divergence between infrastructure plays and richly-valued tech names is likely to dominate trading as earnings season continues.