Key Highlights

● Nasdaq-100 futures fell sharply overnight.

● Alphabet missed on both revenue and earnings.

● The drop came hours after a strong regular session.

● Microsoft's gains were not enough to offset the drag.

Nasdaq-100 futures dropped in overnight trading after Alphabet's third-quarter results disappointed investors late in the day. The slide came just hours after the Nasdaq-100 had outpaced the broader market during the regular session, driven by a strong chip rally.

The drag came from Alphabet's after-hours drop, with Alphabet reporting third-quarter earnings and revenue that both fell short of estimates, marking the company's first miss on both the top and bottom lines in nearly four years, according to one market summary.

A Rare Miss From Alphabet

Net income fell sharply from a year earlier, and an equity-stake loss weighed on results. Search revenue and YouTube advertising revenue both missed, though Google Cloud was a bright spot, with revenue beating estimates.

Perhaps most striking, Alphabet's free cash flow turned negative, a notable reading for a company long known as a cash machine, which also raised its 2026 capital spending forecast, signaling its heavy investment in AI infrastructure will continue.

Ripple Effects Across Tech

Because Alphabet is one of the largest companies in the Nasdaq-100, its decline weighed heavily on futures tied to the index, with other tech names also moving lower after the bell in sympathy.

The sell-off contrasted with Microsoft, which rose in extended trading after reporting revenue and earnings beats along with faster-than-expected growth at its Azure cloud business, though its gain was not enough to offset Alphabet's drag on the index futures.