Key HighlightsStock futures declined Thursday morning, with Dow and S&P 500 futures shedding approximately 0.3% while Nasdaq-100 futures lost 0.4%Major tech players Alphabet and Tesla announced significant capital expenditure increases focused on AI infrastructure, weighing on share pricesBrent crude surged to $97 per barrel amid heightened Middle East conflict following Houthi attacks on Red Sea shippingBond yields reached their highest points since May as surging energy prices rekindled concerns about persistent inflationInitial unemployment claims plunged to 187,000, marking the lowest reading in 57 years and crushing expectations of 215,000Stock futures traded lower Thursday morning as market participants digested quarterly results from two technology behemoths while monitoring crude oil’s approach toward a critical price threshold.The Dow Jones Industrial Average and S&P 500 futures each declined approximately 0.3%. Futures tied to the Nasdaq-100 retreated 0.4%.E-Mini S&P 500 Sep 26 (ES=F)Thursday’s weakness extended losses from Wednesday, when major indices retreated following a flurry of corporate earnings releases.Big Tech’s Capital Spending Plans Unsettle InvestorsAlphabet delivered impressive quarterly results, yet its announcement of elevated capital expenditures spooked market participants. Investors remain laser-focused on Big Tech’s artificial intelligence investments and whether these massive outlays will generate meaningful returns.Tesla chief executive Elon Musk characterized 2026 as a “massive capex year” during the company’s earnings call. He emphasized investments in Optimus humanoid robots, autonomous taxi services, and computing infrastructure.Shares of both companies faced selling pressure in pre-market activity Thursday. As members of the “Magnificent Seven” tech giants, their movements significantly influence broader market indexes.The heightened investment commitments from these industry leaders have reignited debates surrounding artificial intelligence’s profitability timeline. This uncertainty contributed to Thursday’s futures weakness.Crude Oil Rallies on Escalating Middle East HostilitiesBrent crude futures surged to $97 per barrel Thursday morning. The benchmark is rapidly approaching the psychologically significant $100 threshold that could trigger additional market volatility.West Texas Intermediate climbed to $89 per barrel. Energy markets reacted to reports that Iranian-backed Houthi militants launched attacks against commercial vessels in the Red Sea, intensifying the broader US-Iran confrontation.The oil price rally drove Treasury yields upward. Both the 10-year and 30-year yields reached their peak levels since May, stoking renewed inflation anxieties.Climbing yields also dampened speculation that the Federal Reserve might implement interest rate reductions. Some market participants had anticipated potential cuts before year-end.Unemployment Filings Plunge to Five-Decade LowThursday’s economic data delivered one positive surprise: the weekly jobless claims report. Just 187,000 Americans submitted initial unemployment claims during the week concluded July 18.The figure represents a 22,000 decline from the prior week and substantially undershot the 215,000 consensus forecast. It marks the weakest reading since May 1969.The historical low for US initial jobless claims stands at 162,000, recorded in November 1968.New York state accounted for much of the weekly decline, reporting approximately 17,000 fewer claims compared to the previous period. Santander’s chief US economist Stephen Stanley attributed the movement to typical seasonal adjustments and the normalization following elevated June figures.Stanley observed that workforce reductions have actually trended marginally lower in the current year relative to recent historical patterns.Market participants are also awaiting quarterly reports Thursday from Intel, T-Mobile US, and Lockheed Martin.The post Markets Slip as Tech Giants Boost AI Spending While Oil Surges Toward $100 appeared first on Blockonomi.