Updated Jul 27, 2026 – 7.50am, first published at 7.34amKey Posts10 mins ago — 7.50AMFletcher unlocks government grant26 mins ago — 7.35AMJittery investors brace for AI trade’s defining week26 mins ago — 7.35AMMarket highlights26 mins ago — 7.34AMGood morningGo to latestPinned post – 7.35AMJittery investors brace for AI trade’s defining weekAlex GluyasThe global artificial intelligence trade that has rocketed equity markets to record levels is facing a defining week, as the world’s largest technology companies deliver results that will be scrutinised for signs that huge spending is generating the promised returns.Microsoft, Amazon and Meta, the company behind Facebook and Instagram, are scheduled to release quarterly earnings this week amid investor anxieties about the debt-fuelled spending plans. Those companies, along with Alphabet, have forecast $US725 billion ($1 trillion) in spending on infrastructure this year, and analysts expect that figure to hit $US900 billion in 2027.Concerns about a lack of discipline among the tech giants intensified last week after Alphabet raised its capital spending forecast to as much as $US205 billion this year. Tesla chief executive Elon Musk also told investors that 2026 will be “a massive capex year” after the electric vehicle maker reported profits far below market expectations.“For most of the AI boom, capital expenditure was treated as evidence of ambition. Now it is increasingly being viewed as a claim against future free cash flow,” said SPI Asset Management managing partner Stephen Innes. “A hyperscaler can beat earnings, raise guidance and still sell off if the market decides that the cost of maintaining its position is rising faster than the reward.”Jitters across the tech sector last week coincided with a spike in oil prices, which briefly topped $US100 a barrel before settling near $US97 amid reports that Pakistan was trying to restart negotiations between the United States and Iran. Still, the tech-heavy Nasdaq 100 tumbled 1.2 per cent on Friday, and the high-profile Philadelphia Stock Exchange Semiconductor Index dropped 4.3 per cent. While most stocks rose, the S&P 500 finished flat.The Australian sharemarket is poised to shake off the nerves on Wall Street, with futures indicating the S&P/ASX 200 will bounce 0.6 per cent at the opening bell on Monday. The benchmark index tumbled 0.8 per cent on Friday after being swept up in the global sell-off in tech shares.Read more here.Fetching latest articles