Public Markets 24 Hours

Last updated: July 22, 2026, 8:30 PM ET

Oil Prices Surge Amid Middle East Tensions, Bond Yields Climb

Oil futures for a fourth straight session, with Brent crude oil rising near $95 a barrel after Houthi rebels claimed responsibility for striking two Saudi tankers in the Red Sea escalating the conflict. The attacks threatened deeper supply disruptions in the Middle East, pushing European gas prices to approach Iran war highs and leaving the market vulnerable to Strait of Hormuz disruption amid heatwaves and a bidding war with Asian buyers. The U.S. 30-year bond yield has also held above 5% for the longest stretch since 2007, echoing investor concerns about a growing debt pile and sticky inflation. The selloff in government bonds has pushed the 10-year Treasury yield close to its 2026 high, impacting consumers and markets. U.S. commercial crude oil stockpiles posted an unexpected weekly build of 2 million barrels as imports increased and exports fell according to the U.S. Energy Information Administration.

Corporate Earnings and AI Investments Drive Market Sentiment

US stock futures as investors weighed earnings from AI heavyweights for evidence that surging capital spending is translating into growth. Alphabet quadrupled profit to $112 billion, fueled by AI investments, with the company showing growth across its businesses, particularly in cloud computing as it spent heavily on artificial intelligence. However, investors are looking for Alphabet’s earnings to show strong growth in its cloud-computing business to demonstrate a clear return on investment amid skyrocketing AI spending. Tesla’s shares fell in after-hours trading as earnings missed estimates, despite a revenue surge, with its $5.8 billion in spending turning cash flow negative as the electric automaker's shares declined. The company's stock is at an "inflection point" as traders seek AI credibility, with analysts scouring charts for clues on its future direction as results loom. IBM lowered its growth outlook as sales of data-center mainframes sank 42%, though the CEO stated the company is well-positioned across its businesses to help customers capture value from AI.

Railroad Mergers, IPOs, and Financial Sector Activity

Union Pacific reached a deal with Canadian National Railway to give the Montreal railroad further access in the Midwest in exchange for ending its opposition to Union Pacific’s $71.5 billion merger with Norfolk Southern. Nasdaq will change its rules to make it easier to delist flailing businesses as regulators zero in on wild market swings and allegations of manipulation that have plagued trading in so-called meme stocks streamlining the process. Wall Street banks have started buying and selling an initial piece of a $35 billion financing package for Broadcom Inc. and Anthropic PBC’s AI infrastructure expansion, with the biggest private credit funds involved. Daiwa Asset Management Co. is planning to double its sales staff targeting institutional investors to about 20 people expanding its reach. Tanzania is gauging investor appetite for its first international bond sale in more than a decade, holding a non-deal roadshow in London.

Defense Spending and International Trade Dynamics

House Republicans muscled through resistance in their own ranks to approve a budget blueprint for the war and other measures, but its prospects were far dimmer in the Senate. Republicans also pushed through a $1.15 trillion defense bill over opposition from Democrats, who said backing it was akin to embracing the war. President Trump said punishing 50% tariffs would begin by Aug. 19, a significant escalation of the trade war between Canada and the U.S. that he started over a year ago. Brazil’s government unveiled a relief package worth 18.5 billion reais ($3.7 in credit for exporters hit by new U.S. tariffs, as President Luiz Inácio Lula da Silva seeks to shield key sectors offering relief. The U.S. and Saudi Arabia agreed to a landmark nuclear energy pact, though critics warn the agreement lacks safeguards to prevent future uranium enrichment and reprocessing.

Crypto Regulation and Market Infrastructure

Democrats and Republicans are haggling about the Clarity Act, a major bill pushed by the crypto industry, as it moves closer to a Senate vote. House Republicans passed a stock trading bill tied to the SAVE Act and a voter ID measure, drawing bipartisan backing amid public outcry against the practice, but Democrats opposed it after Republicans added a voter ID requirement. Citadel Securities has opened an options trading office in Amsterdam, becoming the latest market maker to establish a presence in the Dutch capital as it expands its European push for an equity derivatives hub.

Corporate Developments and Sector-Specific News

The electric automaker’s shares fell in after-hours trading as earnings missed estimates, with Tesla’s $5.8 billion in spending turning cash flow negative despite a revenue surge. IBM lowered its growth outlook as sales of data-center mainframes sank 42%, though the CEO stated the company is well-positioned across its businesses to help customers capture value from AI. CSX reported higher second-quarter profit and sales, with revenue rising 10% driven by increased fuel surcharge revenue paired with higher volume and pricing across merchandise, intermodal, and coal. Southwest Airlines Co. provided an outlook for the full year that exceeded Wall Street’s projections, citing robust travel demand and spending on the carrier’s premium products beating estimates. Pool supplier Leslie’s Inc. is considering a range of strategic options to address its debt load, including a potential Chapter 11 bankruptcy filing exploring bankruptcy. Aston Martin Lagonda Global Holdings Plc has struck a deal for £550 million ($736 of fresh funds with BlackRock Inc.-owned HPS Investment Partners to bolster its liquidity.