Nasdaq-100 Futures Fall 1.4% as Alphabet (GOOGL) Shares Slide 9% After Q3 Earnings

Nasdaq-100 futures fell 1.4% early Thursday following Alphabet's (GOOGL) third-quarter earnings report, which missed expectations. Alphabet shares dropped 9% after the company reported adjusted earnings per share and revenue below forecasts and posted negative free cash flow of $9.07 billion. The company maintained its full-year capital expenditures forecast between $195 billion and $205 billion.

In contrast, Microsoft gained 3% in after-hours trading after beating revenue and earnings estimates, driven by growth in its Azure cloud infrastructure business. However, Microsoft's lower-than-expected capital expenditure guidance influenced some infrastructure partners negatively. Meanwhile, key Asian markets showed mixed results, with Japan's Nikkei 225 up 1.10% and South Korea's Kospi down 1.24%.

The Federal Reserve recently paused interest rate hikes, leaving rates between 3.75% and 4%. Policymakers indicated inflation remains elevated but are waiting for more data before taking further action. Investors await upcoming economic reports, including the Personal Consumption Expenditures price index for September, a key Fed inflation gauge, and initial third-quarter GDP figures. This market activity illustrates varied investor reactions to earnings and economic signals, especially in tech and AI-related sectors.

These developments matter to ordinary investors as Alphabet's negative free cash flow and missed earnings could pressure stock valuations, while Microsoft's strong cloud growth may support its shares. The Federal Reserve's patient stance on rates and upcoming inflation data will also influence market conditions and investment decisions.