Big tech earnings to test AI rally as markets enter crucial week

Global technology majors including Alphabet, Tesla and Intel are set to report quarterly earnings this week, with results likely to shape the near-term direction of AI-linked equities. Investors are watching for updates on AI capital expenditure, cloud computing growth and semiconductor demand amid concerns about stretched valuations in the sector. Rising oil prices driven by Middle East tensions and uncertainty over Federal Reserve rate cuts add further macro headwinds to the broader market outlook.