S&P 500 Falls 1.2% as $100 Oil, 4.7% Yields and Tech Misses Hit Stocks
Updated
Updated · The New York Times · Jul 23
S&P 500 Falls 1.2% as $100 Oil, 4.7% Yields and Tech Misses Hit Stocks
3 articles · Updated · The New York Times · Jul 23
Summary
The Nasdaq sank more than 2% and the S&P 500 lost about 1.2% on Thursday, marking both indexes’ biggest one-day drops this month.
Alphabet and Tesla drove much of the selloff: Alphabet projected $195 billion to $205 billion in 2026 spending—about $15 billion above its earlier forecast—while Tesla posted $1.1 billion in profit versus $1.3 billion expected.
Oil climbed past $100 a barrel after Houthi attacks on Red Sea tankers deepened fears over Middle East supply, with only 15 ships transiting the Strait of Hormuz on Wednesday versus roughly 130 a day before the war.
The 10-year Treasury yield hit 4.7%, its highest in a year, as investors priced in stronger inflation pressure; Fed futures now imply a 36% chance of a rate increase next week.
U.S. gasoline rose 3 cents to $4.09 a gallon and is up 37% since the war began, underscoring how damaged refineries in the Gulf and Russia are feeding broader market stress.
With war costs nearing $150 billion, why haven't oil prices surged past the once-feared $200-per-barrel mark?
As Iran threatens two vital sea lanes, is the global economy on the brink of an unprecedented supply chain crisis?
How are low-cost drones changing the security of the world's most critical energy and trade chokepoints?
2026 Middle East Oil Shock: Simultaneous Threats to Hormuz and Bab el-Mandeb Upend Global Markets
Overview
The report highlights how escalating tensions in the Middle East have triggered an immediate crisis, causing renewed fighting and expanding the conflict’s geographic scope. This has led to sharp downturns in major Asian stock markets, with Japan’s Nikkei 225 and South Korea’s Kospi both falling significantly. The crisis is also pushing oil prices upward, keeping global markets on edge. These developments show how regional instability quickly reverberates across global markets, affecting both financial indices and commodity prices, and underscore the interconnectedness of geopolitical events and economic outcomes.