Nasdaq 100: Tesla, Alphabet and $100 Oil Put Tech Stocks Under Pressure

Tesla and Alphabet Drag Futures Lower

Tesla and Alphabet both fell sharply in premarket after missing on free cash flow and raising the price tag on the AI race. That alone would have been enough to drag the Nasdaq lower Thursday. But crude is making it worse with Brent pushing toward $100 and WTI above $90 after Houthi attacks on Saudi tankers, and Treasury yields are breaking higher with the 10-year hitting its highest level since January 2025. The Nasdaq is taking it from every direction.

S&P 500 futures are down 0.97%. Nasdaq-100 futures are down 1.35%. Dow futures fell sharply.

Daily September E-mini Nasdaq-100 Index Futures

September E-mini Nasdaq-100 Index futures are trading lower shortly before the cash market opening. This would put the index in a position to challenge last week’s low at 28408.25. With the market already on the weak side of the 50-day moving average at 29836.23, the bias is to the downside. This could lead to a breakdown under last week’s low.

Further weakness today could shift the focus to the long-term retracement zone at 27142.25 to 26208.25. This includes the 200-day MA at 26934.46.

Tesla Missed and the Cash Burn Is Real

Tesla fell more than 7% in premarket after a large second-quarter earnings miss. Operating expenses rose faster than revenue and the company posted negative free cash flow. Capital expenditures hit $5.79 billion during the quarter, up 142% from a year ago, and management still expects more than $25 billion in total spending this year across AI infrastructure, semiconductor production, Optimus and the robotaxi buildout.

The auto business produced $20.52 billion in revenue, up 23% from a year ago, and that is the number keeping this from turning into a complete collapse. But the market is not paying Tesla’s valuation for a solid auto quarter. It is paying for physical AI and autonomous driving and both of those are consuming cash faster than they are producing revenue.

Tesla is trading near $344.90 in the premarket, putting it in position to challenge the April 7 main bottom at $337.24 during the cash session. A breakdown under that level could lead to further downside pressure with a sub-$300 trade possible over the near term.

Alphabet Has the Revenue but Raised the Bill

Alphabet is a different problem. Google Cloud revenue jumped 82% to $24.8 billion and the division’s operating margin rose to 35.6% from 20.7% a year ago. Those numbers prove AI demand is producing real cloud revenue.

The stock still fell more than 5% because the spending number shocked the market. Alphabet lifted its 2026 capital expenditure forecast to $195 billion to $205 billion from a previous range of $180 billion to $190 billion and warned that spending will rise again in 2027. The company also posted negative free cash flow in the quarter. Alphabet has the revenue growth. It is also telling Wall Street that the cost of serving that demand is climbing faster than anyone expected.

Alphabet is trading near $324.98 in the premarket, which puts the stock right at the 200-day moving average at $323.19 and Fibonacci support at $324.25. A technical bounce off the first test of that cluster is possible but downside momentum may be too strong to hold it.

Yields Are Breaking Out on Crude and Claims

The 10-year Treasury yield rose to 4.707%, its highest since January 2025. The 2-year climbed to 4.343% and the 30-year pushed to 5.188%. Crude near six-week highs is the force behind the move and Thursday’s jobless claims number made it worse. Claims came in at 187,000 against a 212,000 estimate, which is not the kind of labor-market softness that gives the Fed any reason to back off. Higher crude, higher yields and an economy that refuses to slow down is the worst combination for the growth stocks leading this market lower.

What to Watch

Oil is the variable that controls everything else Thursday. Crude near $100 keeps yields pointed higher and growth stocks under pressure. A de-escalation in the Middle East would take pressure off crude and give the Nasdaq room to stabilize. More tanker attacks or another round of U.S. strikes does the opposite and the market has seen twelve consecutive nights of strikes with no pause.

Tesla and Alphabet both need to prove the AI spending turns into returns before the market gives them credit for it. The Nasdaq-100 is challenging last week’s low and a break opens the path toward the 200-day average and the long-term retracement zone well below current levels. The Dow has a better chance of holding but the broader market cannot absorb a 10-year yield above 4.70% and crude at these levels without the growth names finding a floor first.

More Information in our Economic Calendar