Stocks Churn as Oil Jumps; Tesla Declines Late: Markets Wrap

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July 22, 2026 - 22:11

5 minutes

(Bloomberg) — Wall Street investors bracing for the start of the big-tech earnings season sent stocks wavering while worries about an escalation of the Iran war boosted oil prices.Losses in most megacaps weighed on the S&P 500, offsetting a rebound in chipmakers that saw Nvidia Corp. climbing 2.3%. Software firms got hit again. In late hours, Tesla Inc. sank as its second-quarter earnings fell short of estimates. Alphabet Inc. whipsawed after its results.The AI euphoria that drove the stock market to all-time highs just a month ago is clearly waning. With skepticism mounting about the hundreds of billions of dollars being poured into data-center development, earnings reports over the next two weeks from the biggest spenders will be highly scrutinized.Investors are increasingly focused on the durability of AI-related capital expenditures, particularly after the semiconductor sector’s strong rally began to lose momentum in recent weeks, according to Ulrike Hoffmann-Burchardi at UBS Chief Investment Office.“We remain constructive on AI’s growth story, but we favor a more balanced exposure across the AI value chain — from semiconductors and hardware to megacap tech and more defensive areas of the industry,” she said. “Investors should also ensure diversification beyond AI.”Traders continued to monitor geopolitical developments. The US and Iran signaled they aren’t ready to return to the negotiating table after both countries escalated attacks. Brent oil briefly topped $95, lifting bond yields on concerns about inflationary pressures.President Donald Trump vowed on social media that the US “will bomb and destroy ONE BRIDGE OR POWER PLANT,” including those around Tehran, any time Iran’s military “shoots at a ship in the Strait of Hormuz.”If the US attacks bridges or power plants, “Iran will strike infrastructure and bridges in the region, including energy facilities in which the US has interests,” Tasnim news agency reported.“Diplomatic efforts to end the conflict in the Middle East have effectively stalled as military strikes continue with no sign of easing,” said Ian Lyngen at BMO Capital Markets. “The rally in energy continues to weigh on the Treasury market as hostilities between the US and Iran intensify.”The escalation in the conflict has raised concerns about higher interest rates. Just a week before the Federal Reserve’s policy meeting, money markets indicate traders see a roughly 30% chance the central bank will hike and a 70% chance it stays on hold.Corporate Highlights:OpenAI President Greg Brockman acknowledged that Moonshot AI had developed a competitive new model and said he wasn’t sure whether the Chinese firm had piggybacked on the ChatGPT maker’s technology. On Wednesday, a White House official accused Moonshot of improperly using US AI models to build its own. Advanced Micro Devices Inc. has agreed to invest up to $5 billion in Anthropic PBC as part of a potential multi-gigawatt deployment of chips for the AI startup. Super Micro Computer Inc. issued preliminary results saying its backlog hit a record on new orders in the quarter of more than $60 billion. AT&T Inc. added more monthly wireless phone subscribers than analysts expected in the second quarter. Philip Morris International Inc. saw a boost in demand for smoke-free products, but trimmed its profit forecast on adverse currency conditions. GE Vernova Inc.’s outlook failed to impress investors, a sign it’s getting harder for firms that sell equipment to data centers to meet sky-high hopes. What Bloomberg Strategists Say…“Beyond the headline earnings, investors are laser-focused on hyperscalers’ returns on their ever-rising AI capex, which will help shape the market reaction to the quarterly results.”—Tatiana Darie, Macro Strategist, Markets Live. For the full analysis, click here.Some of the main moves in markets:StocksStocksThe S&P 500 fell 0.1% as of 4 p.m. New York time The Nasdaq 100 fell 0.5% The Dow Jones Industrial Average was little changed The MSCI World Index was little changed CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1411 The British pound was little changed at $1.3374 The Japanese yen was little changed at 163.15 per dollar CryptocurrenciesBitcoin fell 0.8% to $65,858.29 Ether rose 0.2% to $1,926.32 BondsThe yield on 10-year Treasuries advanced three basis points to 4.66% Germany’s 10-year yield was little changed at 3.17% Britain’s 10-year yield was little changed at 5.03% CommoditiesWest Texas Intermediate crude rose 2.3% to $86.30 a barrel Spot gold rose 1.3% to $4,131.42 an ounce ©2026 Bloomberg L.P.