What’s News in Markets: AI’s Price Tag, Elon Musk’s Reality Check, a Fast Track to Trump Posts

The week in markets was dominated by a stark reality check on the cost of artificial intelligence, a selloff in Elon Musk’s companies, and a new, faster way to trade on President Trump’s social media posts. While Middle East tensions pushed oil above $100 a barrel and rattled bond markets, the biggest story was Big Tech’s mounting infrastructure bill, which erased nearly a trillion dollars in market value from the Magnificent Seven.

The AI Cost Crunch Hits Free Cash Flow

The central drama of the week was the market’s growing unease with the price tag of the AI build-out. Google parent Alphabet delivered what looked like a strong quarter, with double-digit revenue growth. But investors zeroed in on a different number: free cash flow. For the first time since going public over two decades ago, Alphabet’s free cash flow turned negative. The company warned that metric would remain under pressure as it ramps up investments, lifting its capital spending forecast to as much as $205 billion this year. Analysts told the Journal that Wall Street had largely viewed $200 billion as a do-not-cross line.