Public Markets 8 Hours

Last updated: July 23, 2026, 2:30 PM ET

Geopolitical Tensions and Market Turmoil

Global markets experienced significant volatility as geopolitical tensions escalated, particularly in the Middle East. Oil prices surged past $100 a barrel for the first time since May, prompting a sell-off in government bonds and pushing US Treasury yields to 2026 highs. The Brent crude rally above $100 threatens a prolonged surge in inflation and a resetting of interest rate expectations. The dollar jumped on haven flows amid the intensifying Middle East war. The conflict has also led to increased demand for US weapons, with sales soaring and order backlogs expanding for major defense contractors. Lockheed Martin raised its full-year outlook on continued expansion of munitions production.

Tech Sector Faces Headwinds Amid AI Hype and Regulatory Scrutiny

The technology sector encountered headwinds as doubts emerged about the long-term payoffs from AI spending and as regulatory scrutiny intensified. The Magnificent Seven group of megacap technology stocks lost $767 billion as AI skeptics dumped shares. Shares of SpaceX supplier STMicroelectronics slumped after its guidance quashed AI enthusiasm, and the chipmaker's third-quarter sales forecast missed analysts' expectations. Tesla shares tumbled 11% after discounts hit profits, with capital expenditures more than doubling as the company accelerates its pivot to AI and robots. Alphabet Inc., however, continues to set a high pace on AI spending, raising its projections for investing in the technology, though Wall Street remains concerned about the eventual payoff. Separately, Google was fined €890 million by the EU in a test of Trump’s threats to protect Big Tech.

Corporate Earnings and Economic Outlook Mixed

Corporate earnings presented a mixed picture, with some companies reporting strong results while others cut forecasts. Harley-Davidson raised its forecast, expecting to sell more motorcycles this year than previously, driven by strong North American sales, though it remains pressured by European sales and tariffs. Dow Inc. swung to a profit on higher prices as sales grew, with persistent tensions in the Middle East potentially boosting guidance by padding profits without lifting material costs. However, Albertsons cut its sales view as grocery shoppers grow cautious, and Tractor Supply cut its outlook following a tough quarter. US initial jobless claims fell to their lowest level since 1969, signaling muted layoffs in a stable labor market.

Commodity Markets and Agricultural Concerns

Commodity markets saw significant price fluctuations, with gold and silver settling lower. Comex gold settled 2.42% lower at $4046.60, snapping a two-session winning streak, and silver fell 3.7% Settles 2.42%. US wheat farmers are facing worries from scorching heat just as crop prices are surging to a three-year high, threatening yields. The closure of the Strait of Hormuz has limited diesel shipments, putting poor farmers around the world at risk and threatening the food supply. Three crude supertankers managed to slip out through the Strait of Hormuz in the past 24 hours.

Financial Sector and Investment Trends

The financial sector is seeing shifts in investment strategies and growing interest in alternative assets. Hedge funds are growing at the fastest rate in history, with equity rallies and inflows from institutional investors boosting global assets under management by over $400 billion. BlackRock Inc.’s Global Infrastructure Partners LP is exploring securitization deals, and BlackRock is making a case for European corporate bonds. Blackstone led a roughly $400 million private loan for an HVAC firm buyout and reported surging profits driven by AI investments. The US justice department is streamlining company merger reviews to focus on top competition concerns.

Other Notable Developments

In other news, the European Central Bank kept interest rates steady at 2.25%, pausing despite a renewed surge in oil prices. The euro extended its losses after the ECB kept rates steady. Lindt & Spruengli AG faces a US lawsuit over child labor allegations. Apple is reviving its automotive ambitions with a Ford deal for in-car software.