AUTO-UPDATED

Wall St falls as tech earnings spark AI spending worries; oil hits $100

Wall Street indexes declined sharply on Thursday as disappointing earnings from Alphabet and Tesla combined with rising oil prices to fuel investor concerns regarding inflation and corporate spending.

Key Points

  • The Nasdaq Composite dropped 2.15%, while the S&P 500 fell 1.21% and the Dow Jones Industrial Average lost 0.97%.
  • Alphabet shares sank 7% following reports of increased capital expenditure and cash burn during the second quarter.
  • Brent crude oil futures surpassed $100 per barrel for the first time since May due to escalating Middle East hostilities.
  • Defense stocks outperformed the broader market, with Lockheed Martin rising 10.5% and RTX gaining 7.3% after raising their 2026 financial forecasts.

Why it Matters

The market sell-off highlights growing investor anxiety over high valuations and the sustainability of heavy artificial intelligence investments. Rising energy costs and geopolitical instability create additional inflationary pressure, potentially complicating the Federal Reserve's upcoming interest rate policy decisions.
Yahoo Entertainment Published by By Ragini Mathur and Avinash P
Read original