The three major U.S. stock indices fell on July 22 as rising international oil prices heightened inflation concerns and investors grew wary ahead of earnings reports from major tech companies like Alphabet and Tesla.
The Dow Jones Industrial Average closed down 6.06 points, or 0.01%, at 52,218.58. The S&P 500 dropped 10.24 points, or 0.14%, to finish at 7,498.96, while the tech-heavy Nasdaq Composite fell 146.30 points, or 0.57%, ending at 25,690.90.
The surge in oil prices dampened investor sentiment. Brent crude rose by $3.06 to $94.07 per barrel, and West Texas Intermediate (WTI) climbed to $86.83, both reaching their highest levels in about six weeks.
Concerns about supply disruptions increased as armed conflict continued between the U.S. and Iran, with Yemen's Iran-aligned Houthi group threatening maritime blockades on Saudi oil shipments. The uncertainty surrounding key oil transport routes in the Strait of Hormuz and the Red Sea contributed to the rise in oil prices.
There are growing fears that rising oil prices could lead to renewed inflation. The yield on the 10-year U.S. Treasury note rose to around 4.63%, adding pressure to the stock market. There is also apprehension that continued increases in energy prices could delay the Federal Reserve's monetary policy easing.
Tech stocks generally showed weakness ahead of the second-quarter earnings reports from Alphabet and Tesla. Alphabet fell 1.5%, while Tesla dropped 1.3%. As significant investments in artificial intelligence (AI) continue, investors are increasingly focused on whether these expansions will translate into actual revenue and profit growth.
In contrast, semiconductor stocks performed relatively well. The Philadelphia Semiconductor Index rose 0.4%, marking its third consecutive day of gains. Supermicro Computer surged 19.8% on news of large new orders, while Dell Technologies and Hewlett Packard Enterprise (HPE) increased by 9.3% and 3%, respectively.
Stock prices also fluctuated based on corporate earnings. AT&T rose 3.5% after reporting a higher-than-expected increase in wireless subscribers for the second quarter. Philip Morris International also saw a 3.3% increase, buoyed by better-than-expected earnings.
After the market closed, Alphabet and Tesla released their second-quarter earnings. Alphabet exceeded market expectations, driven by strong demand for AI, and announced plans for significant investment expansion. Tesla's revenue also surpassed market forecasts, but the company reported a $1.1 billion deficit in free cash flow for the second quarter.
* This article has been translated by AI.
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