The Nasdaq gained 0.63%, while the S&P 500 advanced 0.66%. Other megacap technology names also traded higher, reflecting broad-based buying across the sector.Cloud And AI Lift SentimentAlphabet’s latest earnings continued to support investor sentiment.Management also highlighted accelerating AI adoption. The company said its Gemini models now process 22 billion API tokens per minute, while the Gemini app has 950 million monthly active users. Alphabet ended the quarter with $242.47 billion in cash and marketable securities, giving it ample financial flexibility to fund future investments.On the earnings call, Chief Financial Officer Anat Ashkenazi said demand for AI infrastructure continues to outpace Alphabet’s investment capacity. The company raised its 2026 capital expenditure outlook to $195 billion-$205 billion, up from $180 billion-$190 billion, and said 2027 capital spending is expected to increase significantly.Management also said Alphabet plans to increase its use of third-party infrastructure during the third quarter while it continues expanding its own data-center capacity.The broader market also remained supportive. The Dow Jones Industrial Average gained 1.06%, while the Russell 2000 climbed 1.32%, reinforcing the risk-on tone across equities.Alphabet Technical AnalysisAlphabet’s short-term trend remains under pressure. The stock is trading 6.4% below its 20-day simple moving average (SMA) and 9.2% below its 50-day SMA. However, it remains 1.3% above its 200-day SMA, suggesting the longer-term uptrend remains intact.Momentum indicators remain cautious. The moving average convergence divergence (MACD) indicator is below its signal line, and the histogram remains negative. That suggests bullish momentum has weakened and the stock may need stronger buying interest to extend its rebound.The moving-average structure also reflects mixed conditions. The 20-day SMA remains below the 50-day SMA, a bearish short-term signal. However, the 50-day SMA remains above the 200-day SMA, supporting the longer-term bullish trend.Alphabet reached its 52-week high in May before pulling back to a swing low in July. The current rally follows that correction.Key resistance sits near $374, where previous rallies have stalled and several intermediate moving averages converge. Initial support is around $271.50, a previous demand zone below the 200-day moving average.Analyst Consensus And Recent ActionsAlphabet carries a Buy consensus rating with an average price forecast of $418.60. Recent analyst actions include: