Alphabet Surges on AI Chip Deal, Fed Rate Cut Bets Rise

US Futures Dip as Investors Await Economic Data, Earnings Reports

Apr. 12, 2026 at 7:10pm by

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US stock index futures are showing a slight dip, taking a breather after a recent tech-driven surge. Investors are closely watching incoming economic data and company earnings, which could reveal the financial health of American consumers. Alphabet's stock is up 3.1% in premarket trading on reports that Meta is considering using Google's AI chips, while Nvidia and AMD stocks fell around 3% each. The market is also pricing in an 80% chance of the Federal Reserve cutting interest rates by 25 basis points next month.

Why it matters

The potential shift in the AI chip market and the Fed's monetary policy decisions could have significant implications for the broader technology sector and the overall economy. Investors are closely monitoring these developments to gauge the direction of the market and make informed investment decisions.

The details

U.S. stock index futures are showing a slight dip, with the Dow down 0.16%, the S&P 500 down 0.19%, and the Nasdaq down 0.33%. Alphabet (Google's parent company) is standing out, with its stock (GOOGL.O) up 3.1% in premarket trading on reports that Meta (Facebook's parent company) is considering using Google's AI chips in its data centers starting in 2027 and renting chips from Google Cloud as early as next year. This move could significantly shake up the AI chip market, as Nvidia (NVDA.O) and Advanced Micro Devices (AMD.O) are currently the dominant players in the sector, and their stocks fell by about 3% each. Broadcom (AVGO.O), which has a partnership with Alphabet, saw a 2.3% gain.

  • The Nasdaq (.IXIC) had its biggest single-day gain in six months on Monday, driven by renewed interest in tech stocks.
  • The market is now pricing in an 80% chance of the Fed cutting borrowing costs by 25 basis points next month, a significant jump from about 40% last week.

The players

Alphabet

Google's parent company, which is seeing a surge in its stock price due to reports of a potential deal with Meta.

Meta

Facebook's parent company, which is reportedly considering using Google's AI chips in its data centers.

Nvidia

A dominant player in the AI chip sector, whose stock fell by about 3% due to the potential shift in the market.

Advanced Micro Devices (AMD)

Another dominant player in the AI chip sector, whose stock also fell by about 3% due to the potential shift in the market.

Broadcom

A company that has a partnership with Alphabet and saw a 2.3% gain in its stock price.

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What’s next

Investors will be closely watching the September retail sales data and the Conference Board's November consumer confidence report, which will provide insights into the financial health of American consumers. A delayed producer price inflation report for September is also expected, with a focus on components that influence the Fed's preferred inflation gauge.

The takeaway

The potential shift in the AI chip market and the Fed's monetary policy decisions could have significant implications for the broader technology sector and the overall economy. Investors are closely monitoring these developments to gauge the direction of the market and make informed investment decisions.