This content was published on
July 23, 2026 - 09:32
4 minutes
(Bloomberg) — Stocks fell as unease over ever-higher artificial intelligence investment outweighed an otherwise strong earnings report from Alphabet Inc.Nasdaq 100 futures dropped 0.6%. Alphabet fell more than 3% in late trading after raising its capital spending forecast to as much as $205 billion for this year, an increase from an earlier projection of $190 billion and more than double its 2025 outlay.The outlook for higher spending boosted chipmakers in Asia, with South Korea’s Kospi Index gaining 4.4%. The Stoxx 600 fell 0.7% ahead of the European Central Bank’s latest interest rates decision. STMicroelectronics NV plunged the most in a year after the chipmaker forecast third-quarter sales that missed analysts’ expectations.The continued rise in oil prices also cast a pall over markets after the Red Sea became another flashpoint for disruption to shipments from the Middle East, lifting Brent above $97 a barrel for a fifth straight day of gains.The key issue ahead of the Google-owner’s results was whether the company could justify pouring ever more money into artificial intelligence despite growing investor scrutiny and an uncertain return on those investments. While traders are now marking down hyperscalers over those concerns, the companies supplying the infrastructure are reaping the rewards.“There are always some doubts as to whether these massive investments will deliver, but I think it’s a false question: these tech companies cannot afford not to spend big,” said Mabrouk Chetouane, head of global market strategy at Natixis IM. “The momentum on capex is in full swing and that means that the strong demand for semiconductors isn’t going away.”Corporate Highlights:BNP Paribas SA reported better-than-expected revenue and profit for the second quarter as its stock traders blew past analysts’ estimates. UniCredit SpA said it will likely assume control over Commerzbank AG soon as Chief Executive Officer Andrea Orcel moves to complete one of Europe’s largest bank deals ever. TotalEnergies SE said second-quarter profit surged as the Iran war boosted prices of crude and refined products, offsetting a drop in profits in its gas business. Nestle SA agreed to sell a 50% stake in its bottled water business to Platinum Equity for about €3 billion ($3.4 billion) in cash as Chief Executive Officer Philipp Navratil carries through on a plan to prune underperforming units. International Business Machines Corp. cut its full-year sales outlook, including for its closely watched software unit, after reporting a dip in demand for its mainframe business. Texas Instruments Inc., the biggest maker of analog and embedded processing chips, gave a sales forecast that topped estimates but failed to excite investors, who have bid up the company’s shares this year. Some of the main moves in markets:StocksThe Stoxx Europe 600 fell 0.7% as of 8:29 a.m. London time S&P 500 futures fell 0.4% Nasdaq 100 futures fell 0.6% Futures on the Dow Jones Industrial Average fell 0.5% The MSCI Asia Pacific Index rose 1% The MSCI Emerging Markets Index rose 1.2% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro rose 0.1% to $1.1426 The Japanese yen was little changed at 163.17 per dollar The offshore yuan was little changed at 6.7704 per dollar The British pound was little changed at $1.3377 CryptocurrenciesBitcoin fell 0.7% to $65,398.06 Ether fell 0.6% to $1,914.82 BondsThe yield on 10-year Treasuries advanced one basis point to 4.67% Germany’s 10-year yield advanced two basis points to 3.19% Britain’s 10-year yield advanced four basis points to 5.07% CommoditiesBrent crude rose 3.6% to $97.42 a barrel Spot gold fell 0.5% to $4,108.47 an ounce This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
