Alphabet Rises on Earnings Beat and AI Investment Plans

Alphabet shares rose in after-hours trading after the tech giant beat earnings expectations and announced increased capital spending, particularly on artificial intelligence. S&P 500 and Nasdaq futures pointed higher, following record closes on Wall Street, supported by recent trade deals and strong US corporate earnings. Meanwhile, luxury group LVMH is expected to post another quarterly sales decline, as the sector struggles under US tariffs and weak demand in key markets.

Equities

The FTSE 100 rose 0.4% on Wednesday to close at a record high of 9,061.49, marking its third consecutive all-time high. Gains were broad-based, with strength in healthcare, media, and auto-related stocks helping lift the index. AstraZeneca added 3.1% and GSK rose 1.8%, contributing to a 2.5% gain in the healthcare sector. Media shares climbed 2.2% as Informa jumped 4.9% after it raised its annual underlying revenue growth forecast. The automobiles and parts index gained 2.5%, supported by an 8.1% rise in Aston Martin and a 1.2% gain in Dowlais Group, tracking optimism around US-Asia trade relations.

Mining shares also rallied, with Hochschild Mining climbing 7.6% on the back of stronger-than-expected silver output. JD Wetherspoon rose 1.9% after reporting stronger sales since May. The standout performer was Alpha Group, which surged 25.6% to a record high after US-based Corpay announced a $2.2 billion cash acquisition of the UK financial services provider. Not all sectors moved higher - construction and materials stocks fell 1.5%, with Breedon Group dropping 7.5% after forecasting full-year results at the low end of expectations.

In the US, the S&P 500 climbed 0.78% to 6,358.91, the Nasdaq rose 0.61% to 21,020.02, and the Dow Jones added 1.14% to 45,010.29, nearing its December record. Nvidia was a major driver, up 2.25%, continuing its 2025 rally as demand for AI chips remains strong.

GE Vernova soared 14.6% after beating earnings expectations and raising its outlook for revenue and free cash flow, boosted by growing power demand from AI and crypto data centres. Thermo Fisher jumped over 9% following stronger-than-forecast profit and revenue for the quarter.

Texas Instruments fell 13% after a weaker-than-expected outlook, citing softer demand and tariff-related uncertainty. That dragged down other chipmakers, with NXP Semiconductors, Analog Devices and ON Semiconductor falling between 1% and 4.6%. Alphabet slipped 0.58% ahead of its earnings report, while Tesla edged up just 0.14%, with investors bracing for weaker revenue and a cautious earnings call following competition pressures and muted consumer sentiment.

Forex & Commodities

The US dollar fell 0.14% on Wednesday, with the dollar index dropping to 97.33, marking its fourth consecutive session of losses. The yen strengthened to 146.20 per dollar, its strongest since 11 July, as speculation mounted over Japanese Prime Minister Shigeru Ishiba’s political future following poor election results. Although Ishiba denied reports of his resignation, the uncertainty kept pressure on the dollar-yen pair. Against the Swiss franc, the dollar rose 0.24% to 0.79425, recovering slightly after three sessions of losses. The euro edged up 0.08% to $1.17625. Sterling gained 0.26% to $1.35690. The Australian dollar rose 0.4% to $0.6584, reaching an eight-month high.

Gold prices slipped 0.2% to $3,379.69 per ounce, following a 1.3% fall the day before. Profit-taking followed recent gains, though a weaker dollar continued to offer some support to bullion. Spot silver declined 0.6% to $39.04, palladium fell 0.9% to $1,266.41, and platinum was broadly steady at $1,410.92.

Oil prices moved higher on Thursday. Brent crude rose 0.9% to $69.15 a barrel, while US West Texas Intermediate gained 1% to $65.93. Prices rose after data from the US Energy Information Administration showed a 3.2 million-barrel drop in crude inventories, well above the expected 1.6 million-barrel draw. Petrol stocks also fell by 1.7 million barrels, nearly twice analysts’ estimates. However, distillate inventories rose by 2.9 million barrels but remain at seasonally low levels.