Dow set to extend gains as AI spending caution drags on Nasdaq

• Reports that Nvidia may provide $250 billion in financing guarantees for an Ohio data center have intensified concerns about the scale of AI infrastructure investment and timeline for returns
• Falling oil prices (WTI crude down 1.7% to $81.19) provide some relief as Trump indicated a 'good chance' of a deal with Iran, shifting market focus from geopolitics to AI trade concerns
• Investors are becoming more selective during earnings season, demanding evidence that elevated AI spending translates into sustainable profitability beyond just strong revenue growth

Market Summary: AI Spending Concerns Weigh on Tech Stocks

Market Performance:

US markets opened mixed on Tuesday, July 28, 2026, with Dow futures up 317 points (+0.6%), while Nasdaq futures fell 1% and S&P 500 futures declined 0.1%. The previous session saw the Dow rise 263 points to 52,210, the S&P 500 inch up 1.2 points to 7,413, and the Nasdaq slip 0.2% to 24,932.

Key Concerns:

Semiconductor stocks remain under pressure, with Nvidia down 1% pre-market after dropping nearly 5% Monday. Investor anxiety centers on AI infrastructure financing requirements and the timeline for returns on elevated spending. Reports of Nvidia potentially providing $250 billion in financing guarantees for an Ohio data center have intensified concerns. Additionally, Chinese advances in chipmaking equipment are raising competitive questions for Western semiconductor companies.

Market Catalysts:

Falling oil prices provided some relief, with WTI crude dropping 1.7% to $81.19 per barrel following President Trump's comments about a potential deal with Iran. This shifted market focus from geopolitics to AI investment sustainability.

Critical Week Ahead:

The Federal Reserve begins its two-day policy meeting Tuesday, with a decision expected Wednesday. Major earnings reports are scheduled from Coca-Cola, Boeing, UPS, PayPal, Visa, Ford, and others.

Analyst Commentary:

Market experts note investors are "running out of patience" for AI investments to deliver returns. "Strong revenue growth is no longer enough to satisfy markets unless accompanied by evidence that elevated spending is translating into sustainable profitability," according to Capital.com's Daniela Hathorn.