U.S. stock futures edged lower after Wall Street closed in negative territory, while Alphabet shares fell 3% in after-hours trading after the Google parent projected that its 2026 capital spending could reach $205 billion, driven by strong demand for artificial intelligence products. The figure underscores a broader escalation in AI infrastructure spending across the largest U.S. technology companies, with collective capital commitments climbing to unprecedented levels even as investors question how quickly those outlays will translate into meaningful revenue.

Asian markets finished higher, led by a 4.4% jump in South Korea's Kospi. Oil prices surged after a tanker was struck by an unidentified projectile off the coast of Saudi Arabia and U.S. President Donald Trump threatened strikes on Iranian infrastructure. Bitcoin moved above $66,000 ahead of a Senate vote on the Clarity Act after Trump accepted an ethics provision that had held up bipartisan negotiations.

Precious Metals Recover Modestly

Gold and silver prices have recovered some ground after weeks of heavy losses, though several banks doubt either metal will return to its record level in the near term.

At press time, spot silver stood at $59 an ounce, marking a gain of roughly 6.3% from the previous week's closing price of $56. Spot gold rose about 2.4% over the same period to $4,119 an ounce.

ING commodity strategists Warren Patterson and Ewa Manthey said the move appeared to stem from traders buying metals following the recent selloff. They found no evidence that the broader economic or geopolitical landscape had shifted enough to sustain a lasting rally.

Both metals remain far from the records they set in late January, capping a powerful run that began in 2025. Gold reached a peak of $5,589.38 an ounce, while silver climbed as high as $121.67. Since then, conditions have turned less favorable. Elevated interest rates and a stronger U.S. dollar have made non-yielding assets less attractive.

The Iran war has simultaneously pushed oil prices higher, raising fresh inflation concerns and altering expectations around U.S. monetary policy. Patterson and Manthey noted that Middle East tensions continue to provide some support for precious metals, but investors are now weighing weaker U.S. economic data against the risk that expensive energy will keep inflation elevated.

They expect gold to remain sensitive to oil-market developments and shifting forecasts for U.S. interest rates. Silver could outperform gold if industrial metals remain firm while investors continue to seek defensive assets. ING also highlighted that stronger confidence across the industrial-metals market, particularly in copper, has helped support silver's recent gains alongside safe-haven demand.

Banks Urge Caution

Bank of America struck a more cautious tone on gold after the metal posted its weakest quarter in 13 years during the three months through June. In a July 16 note, the bank cited heavy bullish positioning, similarities with previous market tops, and the emergence of a death cross as signals that the downturn could deepen and persist.

A death cross forms when a shorter-term price average—typically the 50-day moving average—falls below a longer-term measure, usually the 200-day moving average. Traders often interpret the pattern as a warning that downward momentum is building.

UBS is similarly unconvinced that silver has reached a reliable turning point and has advised investors against rushing to increase exposure. The Swiss bank lowered the price range at which it would consider silver attractive from approximately $55 an ounce to between $48 and $50.

UBS strategist Dominic Schnider wrote on July 20 that rising Middle East risks, the cost of holding a metal that generates no income, and a firm dollar could keep pressure on silver in the near term. He noted that inconsistent investment demand has left the market without a clear price floor, giving traders little incentive to build larger long positions.

U.S. Futures and Earnings

U.S. stock futures moved lower early Thursday as traders processed a fresh batch of earnings, renewed concerns about artificial intelligence spending, and another jump in crude prices. Futures linked to the Dow Jones Industrial Average fell 43 points, or 0.1%, while S&P 500 futures and Nasdaq 100 futures each declined 0.2%.

Alphabet's 3% after-hours drop came after the company said its 2026 capital spending could reach $205 billion, tied to robust demand for AI products. Investors have grown increasingly uneasy about the scale of capital that major technology companies are directing toward the sector, and Alphabet's projection adds to a pattern of escalating outlays that has prompted scrutiny over whether the spending will deliver commensurate returns.

The pullback followed a quietly negative session on Wall Street. The Dow slipped 6.06 points, or 0.01%, the S&P 500 lost 0.14%, and the Nasdaq Composite finished 0.57% lower.

Asian Markets Rise

Asian markets moved in the opposite direction. Japan's Nikkei 225 rose 0.46%, South Korea's Kospi jumped 4.40%, Australia's S&P/ASX 200 gained 0.18%, and mainland China's CSI 300 added 0.23%.

Oil Surges on Geopolitical Risk

Oil climbed after a tanker was hit by an unidentified projectile off the coast of Saudi Arabia and President Trump threatened strikes on Iranian infrastructure. September Brent crude rose 2% to $95.99 a barrel, while West Texas Intermediate gained approximately 1.7% to $88.27.

Bitcoin Advances Ahead of Clarity Act Vote

Bitcoin surged back above $66,000 after dipping from $67,000 the prior day, as market attention shifted to the upcoming U.S. Senate vote on the Clarity Act, which could establish clearer regulatory rules for digital assets. The legislation would mark one of the most significant steps toward a federal framework for cryptocurrencies, an area where the U.S. has trailed other major markets in establishing comprehensive oversight. The latest draft indicates that Trump accepted an ethics provision that had stalled bipartisan negotiations, removing one of the principal political hurdles before the Senate departs for its August recess.

Markets continue to navigate a convergence of earnings reports, heavy AI capital expenditure, geopolitical risks, rising oil prices, and a significant U.S. crypto legislative vote.