This content was published on
July 23, 2026 - 10:08
4 minutes
(Bloomberg) — Stocks fell as unease over ever-higher artificial intelligence spending outweighed an otherwise strong earnings report from Alphabet Inc., while Brent crude climbed for a fifth straight day.Nasdaq 100 futures dropped 0.7%. 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. S&P 500 contracts were down 0.5%.Still, the outlook for higher hyperscaler spending boosted chipmakers in Asia, lifting South Korea’s Kospi Index by 4.4%. The Stoxx 600 fell 0.7% on a busy day for earnings, with both STMicroelectronics NV and Nestle SA getting punished for disappointing results. The European Central Bank is due to deliver its latest interest rate decision later on Thursday.The continued rise in oil prices also cast a pall over markets after the Red Sea became another flashpoint for disruptions to shipments from the Middle East, lifting Brent above $97 a barrel. Global bond yields extended their upward trajectory as traders raised their expectations for tighter monetary policy.Alphabet’s earnings landed just as markets were grappling with whether hyperscalers can justify pouring ever more money into AI. Still, chipmakers and other companies supplying the AI buildout are reaping the rewards as demand for their products and services remains sky-high.“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:SK Hynix Inc. has capped the amount of its South Korea-listed shares that can be converted into its US-traded American depositary receipts at 2.5% of total shares outstanding 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. Some of the main moves in markets:StocksThe Stoxx Europe 600 fell 0.6% as of 8:59 a.m. London time S&P 500 futures fell 0.5% Nasdaq 100 futures fell 0.7% Futures on the Dow Jones Industrial Average fell 0.6% 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 $1.1424 The Japanese yen was little changed at 163.30 per dollar The offshore yuan was little changed at 6.7707 per dollar The British pound was little changed at $1.3373 CryptocurrenciesBitcoin fell 0.7% to $65,418.21 Ether fell 0.6% to $1,915.26 BondsThe yield on 10-year Treasuries advanced two basis points to 4.67% Germany’s 10-year yield advanced three basis points to 3.20% Britain’s 10-year yield advanced four basis points to 5.08% CommoditiesBrent crude rose 3.7% to $97.53 a barrel Spot gold fell 0.9% to $4,094.80 an ounce This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
