Wednesday's market saw software stocks take a hit, with Alphabet set to report earnings. Investors are wary of the impact of artificial intelligence, leading to a sell-off in the sector. Gold prices also rose, driven by geopolitical tensions. Futures pointed higher, but the focus remains on tech earnings and the shifting dynamics within the AI space.

Alphabet's upcoming earnings are under scrutiny, particularly its spending on AI. The company's recent investments in data centers and chips will be key. Federal Reserve Governor Stephen Miran has resigned from his White House advisory role. This move comes amid calls for interest rate cuts, adding to market uncertainty.

The resignation of Miran and the impending release of the U.S. services sector data are also influencing market sentiment. Software stocks face increased competition from AI models, causing concern. A gauge of U.S. services sector activity is also due out. Investors are watching to see if these trends will continue.

Gold prices edged up as tensions between the U.S. and Iran heightened safe-haven demand. The price of gold rebounded amid reports of the U.S. shooting down an Iranian drone. These developments overshadowed talks planned between the two nations, boosting the appeal of the precious metal for investors seeking stability amidst uncertainty.