Public Markets 3 Days

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

Energy Markets Under Pressure Amid Middle East Tensions

Oil futures climbed for a fourth straight session as escalating U.S.-Iran conflict stoked fears of further supply disruptions in the Middle East jumping for a fourth straight session. Brent crude rose near $95 a barrel after Houthi rebels targeted two Saudi tankers in the Red Sea, prompting at least four vessels to. The Strait of Hormuz and Bab al-Mandeb waterways, along with the Black Sea, collectively imperil roughly a quarter of the world's oil supply. U.S. refiners are ramping up diesel production to near-record levels to counter a global supply crunch triggered by the conflicts. Gold, however, held its gains as dip-buying countered inflation fears, even as hostilities pushed oil prices to multi-week highs, rekindling concerns of further Federal Reserve rate hikes. U.S. natural gas futures also settled higher as traders eyed storage data and a Gulf storm.

Corporate Earnings and Technology Sector Dynamics

Alphabet quadrupled its profit to $112 billion, fueled by significant investments in artificial intelligence and growth across its businesses, particularly cloud computing quadrupled its profit. Investors are scrutinizing earnings reports from AI heavyweights like Alphabet and Tesla for evidence that surging capital spending is translating into growth, leading to a mixed market sentiment. Tesla's shares fell in after-hours trading as earnings missed estimates, despite a revenue surge, with capital expenditures more than doubling amid its pivot to semiconductors, autonomous taxis, and humanoid robots. IBM lowered its growth outlook as sales of its data-center mainframes sank 42%, though the CEO expressed confidence in the company's AI positioning. Texas Instruments posted higher second-quarter profit and revenue, with sales increasing to $1.98 billion, up from $1.30 billion a year earlier. Wall Street banks have started trading parts of a $35 billion financing package for Broadcom Inc. and Anthropic PBC's AI infrastructure expansion.

Railroads and Transportation Sector Performance

Union Pacific reached a deal with Canadian National Railway to in the Midwest in exchange for ending its opposition to Union Pacific’s $71.5 billion merger. CSX reported higher second-quarter profit and sales, with revenue rising 10% driven by increased fuel surcharge revenue and higher volume and pricing across merchandise, intermodal, and coal. Southwest Airlines beat estimates on strong demand and premium spending, providing a full-year outlook that exceeded Wall Street's projections, even as operating revenue faced headwinds. However, Southwest also as fuel expenses weighed on its second-quarter profit, expecting adjusted earnings per share of $3.25 to $4.25, down from its previous forecast of at least $4.

Market Infrastructure and Regulatory Developments

Nasdaq Inc. will change its rules to expedite the delisting of struggling companies, as regulators focus on market volatility and alleged manipulation in small-cap stocks. The Clarity Act, a significant bill for the crypto industry, is facing debate in the Senate over whether to bar the president from selling cryptocurrency facing debate. In financial services, companies are attracting activist investors who see opportunities for cash payouts. Three airports are planning to in favor of private security, a move that has drawn criticism from union officials over potential public safety impacts.

Global Dealmaking and Investment Trends

Hong Kong's offshore yuan market is evolving into a global funding hub, with a record amount of yuan flowing into corporate loans and driving capital market activity, signaling progress in China's currency internationalization efforts. Vitamin Well AB raised approximately $2.2 billion through a cross-currency loan to fund its acquisition of EMPWR Nutrition Group. Iberdrola SA agreed to buy an 80% stake in Finland's main electricity distribution network, Caruna Group, for €2 billion ($2.3 billion). Brookfield Asset Management and Canada Pension Plan Investment Board have agreed to buy LXP Industrial Trust for $5.2 billion in an all-cash deal. Mexican restaurant chain La Casa de Toño is reportedly exploring a sale that could exceed $400 million to facilitate expansion exploring a sale.

Bond Market Movements and Yield Dynamics

A selloff in government bonds has pushed the 10-year Treasury yield close to its 2026 high. The 2-year Treasury yield rose to its highest level in over a year rose to its highest level. Japan's 40-year government bond auction drew its strongest demand since March 2025 as investors were attracted to higher yields. Deutsche Bank suggests Japan may need to shift its focus from supporting the yen to managing government bond yields to achieve its economic growth plans shift its focus.

US Economic Indicators and Policy Debates

The Conference Board’s Leading Economic Index slid by 0.2% in June, driven by weakening consumer spending slid by 0.2%. The Trump administration's nuclear energy pact with Saudi Arabia has drawn criticism over a lack of safeguards against future uranium enrichment and reprocessing drawn criticism. House Republicans passed a $95 billion budget blueprint for the war and other measures, though its Senate prospects appear dimmer. Republicans also pushed through a $1.15 trillion defense bill over Democratic opposition, with some Democrats viewing support as an endorsement of the war. The House also passed a stock trading bill tied to the SAVE Act and a voter ID measure, a move opposed by Democrats due to the added voter ID requirement.

Tesla's Financial Performance and Future Outlook

Tesla's profit fell even as car sales rebounded, with price cuts and higher expenses impacting results. The electric automaker's shares declined in after-hours trading as earnings missed estimates, despite a revenue surge, with capital expenditures more than doubling amid its pivot to semiconductors, autonomous taxis, and humanoid robots. Analysts are scouring charts for clues on Tesla's stock trajectory as it prepares to report results that could set the tone for its artificial intelligence ambitions.

Other Notable Market and Business Developments

Pool supplier Leslie’s Inc. is considering a range of strategic options to address its debt load, including a potential Chapter 11 bankruptcy filing is considering a range of strategic options. The financial reporting council in the UK is monitoring the use of offshore auditors by the Big Four accounting firms is monitoring the use. French aerospace company Dassault Aviation booked sharply lower orders in the first half of the year, with no bookings for its Rafale fighter jet.