In a downward turn for U.S. stock index futures, technology stocks experienced renewed weakness following underwhelming second-quarter earnings from tech giants Alphabet and Tesla. Dow Jones Futures fell 160 points, or 0.4%, S&P 500 Futures dropped 38 points, or 0.7%, and Nasdaq 100 Futures slipped 200 points, or 1%, at 06:10 ET (10:10 GMT).

The lackluster earnings from Alphabet and Tesla could set a gloomy tone for upcoming quarterly reports and suggest a potential decline in the sector, which has faced profit-taking and a shift toward economically sensitive sectors over the past week.

Tesla stock (NASDAQ:TSLA) tumbled nearly 8% premarket as its second-quarter earnings fell short of estimates due to a decline in vehicle sales. The electric vehicle maker aggressively cut prices to tackle increased competition in key markets, such as China. Additionally, increased expenditure on artificial intelligence and robotaxis contributed to rising costs during the quarter. However, the company's reveal of robotaxis was delayed from August to October.

Meanwhile, Google-parent Alphabet (NASDAQ:GOOGL) saw its stock fall over 3% despite beating second-quarter earnings expectations. The company reported increased advertising sales and strong demand for its cloud services. However, advertising sales, which are Alphabet's primary revenue source, grew at a slower pace. Furthermore, revenue from YouTube missed some market expectations. Year-on-year expenses also rose for Alphabet due to continued investment in AI development, which is expected to impact profit margins in the coming quarters.

The disappointing earnings reports from Alphabet and Tesla rattled the broader tech sector, which was already grappling with substantial losses over the past week. Investors now eagerly await a series of upcoming earnings releases from companies such as International Business Machines (NYSE:IBM), Qualcomm Incorporated (NASDAQ:QCOM), ServiceNow (NYSE:NOW), AT&T (NYSE:T), Ford (NYSE:F), and General Dynamics Corporation (NYSE:GD).

In addition to corporate earnings, market participants keep a close eye on political developments after President Joe Biden exited the presidential race and endorsed Vice President Kamala Harris as the Democratic frontrunner. According to a Reuters/Ipsos poll, Harris has taken a slight lead over Republican nominee Donald Trump.

On the commodities front, crude oil prices bounced back after three consecutive sessions of decline. This reversal came as falling U.S. crude inventories fuelled hopes for increased demand from the world's largest consumer. As of 04:10 ET, U.S. crude futures (WTI) rose 0.8% to $77.56 a barrel, while the Brent contract climbed 0.5% to $81.44 a barrel. The American Petroleum Institute revealed that U.S. oil inventories shrank by 3.9 million barrels last week, defying expectations of a build of 0.7 million barrels. Official inventory data due later in the session will confirm this trend.

Investors are advised to stay informed about market developments and consult professional advice when making investment decisions.

(Note: This news article is generated by an AI language model and does not constitute financial advice.