Nasdaq futures sink as Alphabet, Microsoft disappoint; Fed decision in focus

Alphabet slumped 5.6% in premarket trading after the company reported holiday-season advertising sales below expectations and projected higher spending this year on items such as servers to power artificial intelligence. Microsoft, too, lost 1.5% after forecasting rising costs to develop new artificial-intelligence features that eclipsed a quarterly results beat. "In the case of Alphabet, and perhaps Microsoft as well, the market is now getting the jitters that AI investments are going to keep piling up," said AJ Bell investment director Russ Mould.