Wall Street Plummets, Oil and Big Tech Weigh
US stocks fell sharply on Thursday (July 23rd), pressured by surging oil prices and earnings reports from two global giants. The Dow Jones Industrial Average fell 527 points, or 1%, the S&P 500 weakened 1%, while the Nasdaq Composite slumped 1.8%.
The main pressure came from rising oil prices after the Iran-backed Houthi group claimed responsibility for attacks on two Saudi Arabian oil tankers in the Red Sea. This attack heightened concerns that the Middle East conflict could escalate and disrupt global energy supply lines.
Market sentiment worsened after US President Donald Trump threatened to attack Iranian infrastructure if Tehran again targeted ships in the Strait of Hormuz. This threat raised investors' concerns that energy prices could continue to rise and trigger new inflationary pressures.
US Treasury yields also rose along with oil prices, with the 10-year yield hitting its highest level since January 2025. This situation puts additional pressure on stocks as funding costs could rise and bonds become more attractive assets compared to equities.
On the issuer side, Alphabet fell 6% after the Google parent company raised its 2026 capital expenditure projection to US$205 billion. Despite demonstrating strong demand for AI, investors are beginning to worry that hyperscalers' large spending could squeeze margins. Tesla also plunged more than 12% after second-quarter performance fell well short of expectations and operating costs rose faster than revenue.
As a result, Wall Street could remain under pressure if oil prices continue to rise, Treasury yields remain high, and Big Tech reports fail to reassure investors. The Nasdaq is most vulnerable because technology stock valuations remain sensitive to interest rates and AI spending. If the Middle East conflict escalates, the market could shift risk-off, with the US dollar and safe-haven assets potentially gaining more traction. (arl)
Source: Newsmaker.id
