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July 23, 2026 - 13:41
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(Bloomberg) — Stocks fell as Alphabet Inc.’s earnings triggered fresh unease over ever-higher artificial intelligence spending, while rising oil prices drove bond yields higher.Futures for the S&P 500 slid 0.6%. Alphabet dropped more than 4% in premarket trading after raising its capital spending forecast for the year to as much as $205 billion, an increase from an earlier projection of $190 billion and more than double its 2025 outlay. Nasdaq 100 contracts were down 0.9%.Also casting a pall over markets was the continued rally in oil as the Red Sea became another flashpoint for shipping disruptions in the Middle East, lifting Brent crude to $99 a barrel for a fifth straight day of gains. Germany’s 10-year bond yield hit its highest level since 2011 as traders ramped up expectations for tighter monetary policy.While the outlook for higher hyperscaler spending boosted chipmakers in Asia, the performance of their US peers was mixed. Earnings from Texas Instruments Inc., the biggest maker of analog and embedded processing chips, failed to excite investors, who had bid up the company’s shares almost 70% this year.Tesla Inc., which reported in Wednesday’s other major earnings release, slid more than 6%. Profit tumbled despite a strong quarter for its electric-vehicle business, with a surge in spending resulting in its first cash burn in two years.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 technology’s buildout are reaping the rewards as demand for their products and services remains sky-high.“Markets don’t really know what they want from these hyperscalers, either there’s too much capex or not enough,” said David Kruk, head of trading at La Financiere de l’Echiquier in Paris. “Even if their results are great, the market price action can go another way given the heavy positioning on these stocks.”In Europe, the Stoxx 600 fell 0.8% on a busy day for earnings, with both STMicroelectronics NV and Nestle SA getting punished for disappointing results. In the US, earnings from Intel Corp. due after the close will give investors the latest read on chip demand.While equity markets have so far paid little attention to July’s rebound in oil prices, sentiment is shifting, said Juliette Cohen, strategist at CPR Asset Management in Paris. The link is much stronger in bond markets, with some sovereign yields trading at their highest levels in months or longer.“There’s a clear acceleration trend both on oil prices and on bond yields,” Cohen said. “We have breached a number of symbolic thresholds like 5% on the UK and 4% in France. All of this is starting to have an effect on equity markets.”Corporate Highlights:Blackstone Inc. reported a 26% jump in distributable earnings for the second quarter, buoyed by profits from exits and its artificial intelligence-related investments. American Airlines Group Inc. said it may report a loss this year amid persistently high fuel prices because of the war in Iran, holding back the US carrier’s efforts to catch up with its larger two rivals. T-Mobile US Inc. reported growth in wireless accounts during the second quarter that beat analysts’ estimates, continuing a winning streak for the Bellevue, Washington-based carrier that has successfully capitalized on customer loyalty programs. 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. RTX Corp. raised its full-year forecast for sales and profit as demand for the aerospace and defense manufacturer’s products continues to grow. Comcast Corp. reported earnings that beat analysts’ estimates on key metrics, buoyed by the first-ever quarterly profitability at its Peacock streaming platform and a string of Hollywood hits. 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. Some of the main moves in markets:StocksS&P 500 futures fell 0.6% as of 7:38 a.m. New York time Nasdaq 100 futures fell 0.9% Futures on the Dow Jones Industrial Average fell 0.5% The Stoxx Europe 600 fell 0.8% The MSCI World Index fell 0.1% CurrenciesThe Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.2% to $1.1387 The British pound fell 0.2% to $1.3348 The Japanese yen fell 0.2% to 163.50 per dollar CryptocurrenciesBitcoin fell 0.5% to $65,570.79 Ether was little changed at $1,925.69 BondsThe yield on 10-year Treasuries advanced three basis points to 4.69% Germany’s 10-year yield advanced two basis points to 3.19% Britain’s 10-year yield advanced five basis points to 5.08% CommoditiesWest Texas Intermediate crude rose 4.7% to $90.95 a barrel Spot gold fell 1.1% to $4,083.34 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Subrat Patnaik.©2026 Bloomberg L.P.
