Later on Wednesday, Alphabet’s earnings report is expected to provide fresh insight into whether the massive capital flowing into artificial intelligence is generating meaningful returns.
Trump Threatens Response to Strait of Hormuz Attacks
President Donald Trump warned that the U.S. would retaliate against any attacks on vessels passing through the Strait of Hormuz.
“From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran,” Trump wrote on Truth Social.
Despite the warning, markets showed little immediate reaction. Oil prices remained sharply higher, while stocks and cryptocurrencies continued to face pressure.
OpenAI Raises AI Compute Spending Forecast to $750B
OpenAI has reportedly increased its projected spending on computing infrastructure to around $750 billion through 2030, up from a previous estimate of $600 billion, according to The Wall Street Journal.
The expanded investment reflects OpenAI’s efforts to secure the computing capacity needed to operate and scale its artificial intelligence models.
The spending includes investments in proprietary data centers, including the recently announced $20 billion “Project Camellia” campus in Georgia.
Benchmark Raises Hut 8 Target, Sees Significant Upside
Benchmark analyst Mark Palmer maintained a buy rating on Hut 8 (HUT) and raised his price target to $195 from $165 after the company signed a second $9.8 billion, 15-year lease agreement at its Beacon Point data center campus.
The new target represents nearly 80% upside from Hut 8’s previous close of $108.98.
Palmer said the updated valuation is based on a sum-of-the-parts analysis that factors in the company’s data center contracts at River Bend and Beacon Point, its 60% stake in American Bitcoin Corp., and the value of its 10,667 BTC holdings as of March 31.
HUT shares were down about 1.35% in pre-market trading.
Oil Rally Hits Six-Week High, Weighing on Crypto
Escalating tensions between the U.S. and Iran pushed WTI crude oil prices up another 3.2% on Wednesday to $87.38 per barrel, marking the highest level since early June.
The oil surge has revived inflation concerns and pressured bond markets, with both 10-year and 2-year U.S. Treasury yields reaching new cycle highs.
Just days earlier, traders had largely ruled out a Federal Reserve rate hike at the upcoming policy meeting, but expectations have now increased to nearly 30%.
The shift has weighed on risk assets, with Nasdaq 100 futures falling 0.8%. Crypto markets also moved lower, with bitcoin slipping below $66,000 after briefly reaching $66,900 the previous day.
Traders Watch $63,000 Bitcoin Support Level
Bitcoin’s next move will likely depend on three major factors: developments in the U.S.-Iran conflict, investor appetite during earnings season, and the Federal Reserve’s policy outlook, according to Daniela Hathorn, senior market analyst at Capital.com.
From a technical perspective, Hathorn identified $63,000 as a key support zone where buyers have repeatedly stepped in. Holding this level could indicate that the recent pullback is stabilizing, while a break below it may trigger additional profit-taking.
On the upside, the $65,000–$66,000 range remains important. A move above this area could improve momentum and increase the likelihood of a retest of recent highs.
Tesla’s AI Strategy Faces Different Investor Expectations
Tesla’s upcoming earnings report presents a unique situation compared with other major technology companies.
While investors want companies like Alphabet to prove that massive AI spending is delivering returns, Tesla investors are looking for increased investment in artificial intelligence.
The stock has declined 16% this year, and unlike its Big Tech peers, a larger AI spending outlook could potentially support Tesla shares rather than pressure them, according to Bloomberg.
Bitcoin ETFs Extend Inflow Streak to Six Days
U.S. spot bitcoin ETFs recorded their sixth consecutive day of inflows, adding $203 million on Tuesday, according to SoSoValue data.
The streak marks the longest period of ETF inflows in three months. Ethereum ETFs also attracted $37.5 million during the session.
Bitcoin ETFs accumulated roughly $930 million during the six-day run, though this remains below the $2.5 billion that exited during the eight-day outflow streak in late June. Total ETF assets have climbed close to $81 billion, the highest level since mid-June.
Bitcoin gained about 2.8% during the period, reaching $66,900 on Tuesday, its highest level since June 16.
Bitcoin Pauses Below $66K as Markets Await Alphabet Earnings
Bitcoin traded near $65,900 on Wednesday, remaining below its recent two-week high and up around 1.5% for the week.
The pause reflected broader market caution, with a two-day recovery in semiconductor stocks losing momentum as investors waited for Alphabet’s earnings after the U.S. market close.
Nasdaq 100 futures declined 0.8%, while South Korea’s Kospi gave up some early gains and European technology stocks also weakened.
Alphabet previously announced plans to increase annual capital spending to as much as $190 billion. Investors are now looking for evidence that these AI investments are generating results, especially as semiconductor stocks face growing concerns over whether the pace of AI spending can continue.
Bitcoin has tracked the AI trade closely this month, rising when chip stocks strengthen and declining when technology shares weaken. This correlation reflects shared risk appetite and the growing connection between Bitcoin miners and AI data center operations.
Other major cryptocurrencies remained relatively stable. Ether traded near $1,917, up about 2% over the week, while Hyperliquid underperformed with a 2% weekly decline.
Attention now turns to Alphabet’s results and the Federal Reserve meeting scheduled for July 28–29, which could provide further direction for risk assets.
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