Market Decline on Thursday
U.S. equities fell sharply as oil prices surged amid escalating Middle East conflict. The Dow Jones lost 506.93 points, or 0.97%, closing at 51,711.65. The S&P 500 dropped 1.21% to 7,408.30, and the Nasdaq Composite declined 2.15% to 25,137.69, pressured by a 7% drop in Alphabet and a 14% loss in Tesla following earnings reports.
Oil Prices Spike
Brent crude futures rose 7% to $100.69 per barrel, and WTI advanced 6% to $92.19, their highest levels since last month’s U.S.-Iran agreement. The Houthi militant attacks on Saudi tankers and U.S. threats against Iranian infrastructure fueled the surge.
Treasury Yields Rise
The 10-year Treasury yield briefly topped 4.7%, the highest since January 2025, while the 2-year yield touched 4.37%. Rising yields reflected investor concern over the Federal Reserve’s potential rate hikes in September.
Tech Sector Pressure
Alphabet increased its 2026 capital expenditure forecast to $195–205 billion due to strong AI demand, while Tesla missed earnings expectations and saw operating expenses rise faster than revenue. Both companies reported negative free cash flow for the quarter. Other hyperscalers, including Meta, Microsoft, and Amazon, also traded lower.
