Tech Stocks Mixed As AI Debate Intensifies

US futures show mixed performance, with Nasdaq contracts falling as Alphabet's underwhelming search and advertising results reignite discussions about the effectiveness of AI investments. Meanwhile, Microsoft's strong Azure performance and reduced capital expenditures have driven its shares higher, contrasting with the broader tech sector's struggles. Small-cap stocks are outperforming, suggesting investors are shifting focus away from large tech firms. The 10-year Treasury yield remains near 5%, reflecting ongoing uncertainty about the Federal Reserve's path. As of 7:30am ET, S&P futures are 0.3% lower, Nasdaq futures are down about 1%, and Dow futures are flat, while Russell 2000 futures are up 0.5%.