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A global rally in technology shares stalled after disappointing earnings from two industry heavyweights revived doubts over whether billions of dollars of AI spending will deliver sufficient returns, according to Bloomberg.

Nasdaq 100 futures fell 0.9%, signaling the index's three-day rally was set to end, while S&P 500 contracts dropped 0.2%. Alphabet slumped 10% in US premarket trading after sales underwhelmed, reinforcing concern that Google is losing ground to AI rivals despite hundreds of billions in investment. Samsung Electronics slid 4.1% as the absence of a new shareholder return plan disappointed investors, chip profit missed estimates and capex rose. Software names also fell after weak quarters from ServiceNow and Fortinet: Fortinet plunged 25%, and an ETF tracking the software sector dropped 3.4%.

"The market isn't questioning whether Alphabet has an AI opportunity; it's questioning how much investors should pay for that opportunity while the cash-flow consequences of building it remain so substantial," said Chris Weston, head of research at Pepperstone. "Investors remain willing to reward companies demonstrating clear AI-driven revenue momentum, but they're becoming increasingly unforgiving when spending, margins and cash generation fall short of expectations."

Not everyone suffered. Microsoft rose 3.7% premarket on solid cloud sales, while Oracle extended gains after an 11% jump on a long-term free cash flow outlook, with its credit risk improving the most in nearly nine months. Marvell plunged more than 9% on a report it is in advanced talks to buy Lumentum, which rose 4.5%. Amazon reports Thursday and Apple next week, testing whether heavy investment is translating into profit.

Treasuries gained for a second day after the Fed held rates steady on a 10-2 vote Wednesday. The two-year yield fell two basis points to 4.67% and the 10-year three basis points to 4.99%. "It's really the market catching the hint that Fed Chair Warsh is showing some hints of caution, and it may be related to perceived excessive AI optimism," said Eugene Leow, a strategist at DBS Bank. "Safety and the potential of slowing activity in the AI segment is weighing on yields."

Brent fell 0.7% to $114.53 a barrel as traders weighed diplomatic efforts in the Middle East to avert a restart of US strikes on Iran. Bitcoin fell 1.4% to $80,128.15 and ether 1.7% to $2,318.86. Core PCE data due Thursday will offer fresh clues on inflation, ahead of ECB and BOJ decisions both expected to leave rates unchanged.