Markets Eye Iran, Oil Surge and AI Spending
By Tom LoBianco | Quincy News Correspondent
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Washington (Quincy News) — Market Recap: The war in Iran continued driving markets Wednesday. New strikes and comments from Secretary of State Marco Rubio casting doubt on peace talks weighed on stocks and pushed oil higher, with some traders warning of further gains if the conflict escalates.
The S&P 500 fell 0.14% to 7,498.96, the Nasdaq fell 0.57% to 25,690.90, and the Dow slipped 0.01% to 52,218.58. Brent crude futures jumped Thursday morning to nearly $98 a barrel, up more than 4%, after settling around $94 on Wednesday. Treasury yields climbed between one and four basis points. AT&T shares jumped 4% after beating earnings expectations.
Alphabet and Tesla earnings drew mixed reactions after the close. Alphabet beat estimates, with revenue up 24% and Google Cloud surging 82%, but shares fell after capex guidance rose to $195-205 billion. Tesla revenue hit a record $28.24 billion, but earnings missed and free cash flow turned negative on increasing AI and robotaxi spending. The results reinforced investor concerns over the pace of AI spending and when those investments will translate into stronger cash flow. For consumers, rising oil remains the biggest near-term concern, with gas and shipping costs likely to stay elevated if the conflict in Iran continues.
Today’s Focus: Jobless claims open the day at 8:30 a.m. ET, with forecasters expecting 211,000 new applicants, up from last week’s 208,000. Job growth has been slow this year, with unemployment steady at 4.2% amid a declining labor force participation rate and a stagnant “no hire, no fire” mindset among employers.
Comcast and Honeywell report before the bell and Intel reports after the close – a test of whether the AI-spending debate continues.
ON THE SCHEDULE FOR THURSDAY, JULY 23, 2026
-8:30 a.m. ET – Initial Jobless Claims
-Earnings – Comcast, Honeywell, Intel
-Friday, before the open – American Express, Verizon earnings
-Friday, 9:45 a.m. ET – S&P Global Flash U.S. Manufacturing and Services PMIs (Preliminary, July)
-Friday, 10:00 a.m. ET – New Residential Sales (June)
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