Amazon’s projected capex dwarfs that of its peers — which have already spooked markets

Amazon is following in the footsteps of fellow tech giant Microsoft, and not in a good way. Shares of the e-commerce and cloud giant plunged more than 11% in extended trading after the company reported fourth-quarter earnings that missed expectations.

The bigger jolt, however, came from Amazon’s enormous capital expenditure projection — $200 billion, far above analysts’ estimates of $146.6 billion and sharply higher than the roughly $131 billion in 2025.

That figure also dwarfs Alphabet’s projected capex range of $175 billion to $185 billion, which already gave traders and analysts pause. The message from markets was clear: Investors are growing wary of how much Big Tech is spending to chase the next phase of artificial intelligence.

Soaring capex and fears that AI is eroding the value of software firms contributed to a tech sell-off on Thursday. The Nasdaq Composite fell 1.59% on declines in Nvidia, Oracle and Qualcomm, among others. Stocks were further pressured by high U.S. layoffs in January. The S&P 500 dropped 1.23%, putting it in the red for 2026, and the Dow Jones Industrial Average retreated 1.2%.

The market decline, however, is “a positive sign” for Stephen Tuckwood, director of investments at Modern Wealth Management, who argued that it signals “the market is discerning at this point rather than just irrational exuberance.”

Perhaps reflecting some of that discernment, Bitcoin sank to $62,736 as of 7:50 a.m. Singapore (6:50 p.m. ET), its lowest level since November 2024. Other cryptocurrencies, such as Ether and Solana, have also been losing ground this week.

Beyond markets, politics will be in focus this weekend in Asia. Japan holds snap elections this Sunday — latest polls suggest Prime Minister Sanae Takaichi’s Liberal Democratic Party is set for a landslide victory. Thailand, too, will be electing its political leaders the same day, but investors are likely to pay closer attention to Japan, given the potential impact of Takaichi’s expansionary fiscal stance on the yen and government bonds, both of which play an outsized role in global markets.

— CNBC’s Annie Palmer contributed to this report.

Trump would decide on investigations over Fed chairs, U.S. Treasury Secretary Scott Bessent said Thursday. That came in response to Sen. Elizabeth Warren’s question about whether Trump would investigate Fed Chair nominee Kevin Warsh if he doesn’t cut rates.

U.S. layoffs in January hit their highest level for the start of a year since 2009, outplacement firm Challenger, Gray & Christmas reported Thursday. Employers announced 108,435 layoffs for the month, up 118% from the same period a year ago and 205% from December 2025.

Novo Nordisk says it will take legal action against Hims & Hers after the telehealth provider announced it would launch a cheaper copycat version of Novo’s Wegovy weight-loss pill. It would cost $49, far less than the $149 Novo charges for the branded pill.

The S&P 500 is in negative territory for 2026, after the index posted losses on Thursday. Other major U.S. indexes also fell on a sell-off in tech stocks. The pan-European Stoxx 600 lost 1.05%. The Bank of England and the European Central Bank kept rates unchanged.

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Gold bulls hold firm after historic metals sell-off — but silver could be in for a bumpier ride

As precious metals continue to seesaw after Friday’s historic sell-off, investment banks are doubling down on gold — but urging caution on going all-in on silver.

UBS strategists said they viewed gold’s moves as “normal volatility within a continuing structural uptrend, rather than the end of the bull market.” In a Tuesday note, analysts at Goldman Sachs also remained bullish, despite the sell-off.

“We continue to see significant upside risk to our gold forecast of $5,400/toz by Dec 2026,” they said.

— Chloe Taylor