Volatile U.S. Stocks Eased as Oil Prices Surged 4%

Barry Adams
23 Jul, 2026
New York City

U.S. indexes traded down on Thursday amid escalating tensions in the Middle East, and investors reviewed the latest batch of earnings. 

The S&P 500 Index dropped 0.4%, and the tech-heavy Nasdaq Composite decreased 0.3% as worried investors focused on the durability of the hyperscalers' elevated level of artificial intelligence infrastructure spending. 

Crude oil prices surged and advanced for the fifth session in a row after the Houthi rebels attacked two Saudi tankers, bringing the shipping disruptions to the Red Sea. 

The West Texas Intermediate crude oil price jumped 4% to $90.25 a barrel, and the international Brent crude oil price increased 4.5% to $98.29 a barrel. 

Later in the day the European Central Bank is widely anticipated to hold interest rates, following June's first increase in three years. 

The renewed surge in oil prices has supported the view that policymakers are likely to raise rates in September, and investors will focus on ECB President Christine Lagarde's press conference.   

 

U.S. Movers 

Alphabet Inc Class C decreased 3.3% to $331.91 after the parent company of Google search lifted its 2026 estimate of artificial intelligence infrastructure spending. 

Consolidated revenue in the second quarter increased 24% to $119.8 billion from $96.4 billion, net income soared to $112.1 billion from $28.2 billion, and diluted earnings per share jumped $9.11 from $2.31 a year ago. 

Net income soared because of a massive $99 billion boost in the revaluation of investments in SpaceX and Anthropic and other investment holdings. 

However, core operating earnings increased 30% to $40.8 billion, driven by an 82% surge in Google Cloud and steady advertising revenue.  Google search revenue jumped to $63.2 billion from $54.2 billion, YouTube ads increased to $11.1 billion from $9.8 billion, and Google cloud revenue advanced to $24.7 billion from $13.6 billion, and Google services, platforms, and devices revenue gained to $12.9 billion from $11.2 billion a year ago. 

The company's long-term debt jumped to $98.2 billion from $46.5 billion, and operating lease liabilities advanced to $14.6 billion from $12.7 billion a year ago. 

Tesla declined 3.2% to $358.55 after the vehicle maker reported second-quarter results.

Total revenues increased 26% to $28.2 billion from $22.5 billion, net income attributable to shareholders decreased 5% to $1.11 billion from $1.17 billion, and earnings per diluted shares declined 3% to 32 cents from 33 cents a year ago. 

Total automotive revenue increased 23% to $20.5 billion, energy generation and storage advanced 13% to $3.1 billion, and services and other revenues soared 50% to $4.6 billion. 

Total vehicle deliveries increased 25% to 480,126 from 384,122 a year ago, driven by a 25% rise in Model 3/Y deliveries to 467,762 from 373,728 a year ago.