U.S. stock futures retreated as worries over artificial-intelligence spending weighed on sentiment while oil prices closed in on $100 a barrel. Dow futures fell 500 points as Alphabet and Tesla slid in premarket trading after both signaled increased AI spending. Alphabet shares dropped around 4%, while Tesla fell over 5% after reporting negative free cash flow. Tesla CEO Elon Musk called it a "massive capex year" with potentially the best returns ever.

U.S. crude oil jumped above $90 per barrel, with Brent briefly topping $98, after Houthi attacks on Saudi tankers in the Red Sea. The European Central Bank held rates at 2.25%, with traders expecting a September hike. Google was fined $1 billion by EU regulators under the Digital Markets Act.

Lockheed Martin surged 5% on an earnings beat and raised guidance. Comcast rose 0.5% as Peacock hit profitability. European defense stocks rallied, with Dassault Aviation jumping 8-10% on 46% sales growth. SK Hynix gained 5.3%, while Leslie's plunged 47% on bankruptcy reports. Treasury yields rose with oil ahead of jobless claims data.