Stock Market Today, July 23, 2026: Stocks Close Sharply Lower as Alphabet, Tesla Sink

The S&P 500, the Dow Jones Industrial Average and the Nasdaq Composite all closed sharply lower on Thursday, July 23, 2026. The tech-heavy Nasdaq fell the hardest of the three. Three developments drove the selloff. Alphabet and Tesla, which reported quarterly results Wednesday evening, both said spending on artificial intelligence and related infrastructure would be much larger than planned. Brent crude climbed back above $100 a barrel after attacks on Saudi tankers in the Red Sea region. Treasury yields rose as traders priced in a growing chance that the Federal Reserve would raise interest rates at its meeting next week or by September.

Each of the three forces hit a different part of the market. Spending worries weighed on the largest technology and internet companies. Higher oil prices hit fuel-heavy businesses, including airlines. Rising yields and Fed hike odds pressured stocks more broadly. With about an hour left in the session, the Dow was down around 600 points, and only eight of its 30 components were trading higher. Tesla was among several stocks that extended their losses through the afternoon.

Thursday’s selloff followed a modestly negative Wednesday session. The major indexes closed slightly lower that day before Tesla and Alphabet released results after the bell. It also extended a run of pressure on technology stocks tied to AI capital spending that began the prior week. The Nasdaq dropped on AI spending concerns on July 16, and all three major indexes posted weekly losses on July 17.

Alphabet Falls About 7% After Raising Its Capex Forecast Again

Alphabet shares fell about 7% by the close even though the Google parent topped analysts’ estimates for the second quarter. The stock was the biggest drag on the Dow and one of the weakest names in the S&P 500 and the Nasdaq.

Alphabet reported second-quarter earnings of $9.11 per share on revenue of $119.80 billion, up 24% from a year earlier. Both figures beat the consensus estimates compiled by Visible Alpha.

The selling centered on costs. Alphabet raised its 2026 capital expenditures guidance to a range of $195 billion to $205 billion. Three months earlier it had projected $180 billion to $190 billion. The increase was the second time this year the company had lifted its capex forecast.

Chief Financial Officer Anat Ashkenazi attributed the increase mainly to faster delivery of cloud computing capacity to keep up with demand. She also told analysts on the earnings call that spending would likely rise significantly again in 2027.

Alphabet’s revenue grew nearly a quarter from a year earlier as the cloud buildout continued. Each upward revision to the spending plan, however, pushes back the point at which the returns on that outlay can be measured. The selling also spread beyond Alphabet. Together with Microsoft, Amazon, Meta Platforms and Oracle, the group of hyperscalers is expected to spend more than $700 billion on capital expenditures this year. Most of that money is earmarked for AI infrastructure such as chips, servers and networking equipment. Amazon and Meta, two of the other members of that group, both fell sharply Thursday.

Alphabet also faced a regulatory headline. The European Union fined Google roughly $1 billion over allegations that it gave its own search services preferential treatment. The penalty is small relative to the company’s $119.80 billion in quarterly revenue, and it arrived on the same day as the higher spending forecast.

Tesla Sinks Nearly 15% After Missing Profit Estimates

Tesla posted the steepest drop among large companies. Shares sank nearly 15% by the close and led decliners in both the S&P 500 and the Nasdaq.

In midmorning trading the stock was already down 13% at about $235, its lowest level in nearly a year. At that intraday level, Tesla had lost 28% of its value since the start of 2026, the worst year-to-date performance among the Magnificent Seven. The stock extended its losses through the afternoon.

Unlike Alphabet, Tesla missed on profit. The electric vehicle maker reported second-quarter earnings of 33 cents per share, down 18% from the year-earlier quarter and well below the 55 cents analysts had expected. Revenue rose 26% to $28.2 billion, which beat forecasts. The shortfall in earnings came from thinner margins and heavier spending.

Gross margin contracted by more than 2 percentage points to 16.9%. Tesla cited lower revenue from regulatory credits and a decline in the average selling price of its vehicles.

Free cash flow turned negative for the first time since early 2024. The company burned through more than $1 billion during the quarter as capital expenditures more than doubled to nearly $6 billion.

CFO Vaibhav Taneja reaffirmed the company’s plan to spend more than $25 billion on capex this year, compared with $8.5 billion in 2025. He said spending should keep rising in the years ahead. The money is going to the Robotaxi fleet, production of the Optimus humanoid robot and a chip manufacturing facility of Tesla’s own. That spending program is expanding while margins in the core car business are shrinking.

Consumer Discretionary and Communication Services Lead Sector Losses

The two biggest losers among S&P 500 sectors were the ones that hold Tesla and Alphabet. Under the S&P 500’s sector classification, Tesla belongs to Consumer Discretionary. Alphabet sits in Communication Services, alongside Meta. Neither company is part of the Information Technology sector.

About an hour into trading, Consumer Discretionary was down roughly 5% and Communication Services was down about 4.8%. At that point Tesla was down 12% and Alphabet 7%. The Information Technology sector, which holds chipmakers and software companies, was down only about 0.6% at the same time.

Amazon, the other heavyweight in Consumer Discretionary, added to that sector’s slide. Meta added to the decline in Communication Services.

The Nasdaq, which has a heavier concentration in the Magnificent Seven, fell more in percentage terms than the S&P 500 and the Dow. The Dow’s decline reflected losses in Alphabet and Amazon along with a narrow base of gainers.

Every Magnificent Seven Stock Closes Lower

The selling extended beyond the two companies that reported. Every member of the Magnificent Seven finished lower. Amazon fell about 4.5% and Meta about 3.5%. Both companies are hyperscalers whose own capex budgets now face the same questions Alphabet’s raised.

Other tech companies that reported Wednesday evening posted mixed results in the market. Chipmaker Texas Instruments dropped 4%. Enterprise software maker ServiceNow fell about 3.5%. IBM, a Dow component, managed a small gain and was one of the few tech names to finish higher.

Intel Slips Ahead of Its Report

Intel slipped 2.5% ahead of its own results, which were due after Thursday’s close. The stock had been up about 1% in premarket trading before turning lower with the broader market.

Analysts surveyed by Visible Alpha expected growing revenue and profits, helped by demand for Intel’s AI hardware. Going into the report, Intel shares had fallen close to 30% from their highs of the prior month amid a broader pullback in tech. They were still up nearly 180% for the year, which made Intel one of the best-performing stocks in the S&P 500 in 2026.

AMD Holds Its “Advancing AI” Keynote

Advanced Micro Devices scheduled its “Advancing AI” keynote for 12:30 p.m. ET, with CEO Lisa Su headlining. Analysts had said the event could bring product and partnership announcements and possibly a more ambitious long-term outlook built on AI demand.

AMD shares entered the day up roughly 160% year to date. They were down less than 1% before the opening bell.

Brent Crude Tops $100 After Houthi Tanker Attacks

The second force behind the selloff came from the energy market. Oil prices extended a recent climb after Iran-backed Houthi rebels in Yemen struck two Saudi Arabian tankers.

President Donald Trump responded on Truth Social. He warned that if the Houthis repeated the attacks, the U.S. would hold Iran responsible as the Houthis’ sponsor, and he said both Iran and the Houthis would face major military punishment.

Brent crude futures, the global benchmark, briefly touched $102 a barrel during the session. Brent was up 6.2% at just under $100 by 4 p.m. ET. It was the first time in two months that Brent had traded above $100.

West Texas Intermediate, the U.S. benchmark, rose 5.4% to $91.50.

Higher crude prices raise costs directly for fuel-heavy businesses such as airlines, shippers and chemical makers. They also feed into inflation through gasoline, which had already moved back above $4 a gallon nationally. American Airlines cut its full-year outlook Thursday, citing the recent rise in fuel costs.

Treasury Yields Climb as Fed Hike Odds Jump

The 10-year Treasury yield rose more than four basis points from Wednesday’s close and reached its highest level since January 2025. The 10-year yield influences borrowing costs across the economy, including mortgage rates. Higher yields weigh most on companies valued for profits expected years from now, a group that includes many of the AI-linked stocks that fell Thursday.

The move in yields tracked shifting expectations for the Federal Reserve. According to CME Group’s FedWatch tool, traders priced a 36% probability of a rate hike at the Fed’s meeting next week. A week earlier that probability had been about 12%.

Traders also put the chance of at least a quarter-point hike by the September meeting at 82%, up from 52% the week before. A week earlier, the market had treated a hike as unlikely. By Thursday, a hike by September was the more probable outcome.

Melissa Brown, global head of investment decision research at Simcorp, linked the oil move and the rate outlook in written commentary. She said higher oil adds to inflation that was already well above the Fed’s 2% target, which pushes bond investors toward expecting a hike. She said the jump in oil also revives concern that consumers will cut spending, squeezing company revenue at the same time costs rise. Brown suggested inflation had reached a point where it signals a threat to the economy rather than strength. The longer history of price growth appears in the U.S. inflation rate by year data.

Defense Contractors and Honeywell Rise on Results

Several companies that reported Thursday morning finished higher. Defense contractors had a strong session: Lockheed Martin jumped almost 11%, and RTX gained 7.5% after their results.

Industrial conglomerate Honeywell International rose about 5.5% and led the Dow’s small group of gainers. With about an hour left in the session, when the Dow was down around 600 points, only eight of the index’s 30 components were in positive territory. Honeywell was up about 4.5% at that point, and only four other Dow members held gains of 1% or more. Alphabet and Amazon were the index’s largest decliners.

Roper Technologies Leads the Nasdaq After Raising Guidance

On the Nasdaq, Roper Technologies rose about 6% to lead the index after raising its full-year guidance. The Sarasota, Florida-based company describes itself as running vertical software and technology businesses in defensible niche markets.

Roper now expects 2026 adjusted earnings per share of $22.15 to $22.30, up from a previous range of $21.80 to $22.05. It raised its revenue growth outlook to at least 8% from about 8%. It also lifted its organic revenue growth outlook to about 6% from a range of 5% to 6%.

For the second quarter, Roper posted adjusted EPS of $5.38 on revenue of $2.11 billion, up 9% year over year. Analysts surveyed by Visible Alpha had expected $5.29 per share and $2.10 billion in revenue.

CEO Neil Hunn credited strong first-half performance, share repurchases and durable demand for the company’s mission-critical products. He said Roper would use its capacity for capital deployment to pursue acquisitions that keep compounding free cash flow per share. Even with Thursday’s gain, Roper stock was down about 20% for the year.

T-Mobile, Comcast and American Airlines Fall After Reports

Several companies outside the technology group also fell sharply after reporting. T-Mobile US sank 11%, and Comcast fell 7%.

American Airlines Cuts Its Outlook on Fuel Costs

American Airlines Group fell 8.5% by the close after trading down more than 4% before the bell. Entering Thursday, the stock was down 3.5% for the year.

The Fort Worth, Texas-based carrier beat second-quarter estimates. It reported adjusted profit of $0.15 per share, compared with a Visible Alpha consensus of $0.04. Operating revenue reached a record $16.74 billion, above the $16.71 billion analysts expected.

The airline’s forecast drove the decline. Citing the recent rise in fuel costs, American cut its 2026 adjusted EPS guidance to a range from a loss of $0.65 to a profit of $0.65. It had previously projected a range from a loss of $0.40 to a profit of $1.10. Analysts had expected an adjusted profit of $0.72 for the year.

For the third quarter, American guided to an adjusted loss of $0.70 to $0.10 per share. Analysts had been looking for a profit of $0.33. The cut put the day’s jump in crude prices directly into a company forecast, with jet fuel among an airline’s largest costs.

Futures Pointed Lower Before the Open

Losses began before the opening bell. Tesla and Alphabet released their results after Wednesday’s close, and the reaction played out in after-hours trading and in stock index futures overnight, along with the tanker attacks and the move in oil.

Futures tied to the Dow pointed down 0.4% before the open. Nasdaq-linked futures, with heavier exposure to technology stocks, also pointed lower. The decline deepened after the open as oil kept rising and yields climbed, and the losses at the close were larger than those in morning trading.

SpaceX Short Interest Climbs as Shares Hit Record Low

SpaceX, which trades under the ticker SPCX after its initial public offering last month, drew a sharp increase in bets against the stock. Elon Musk had recently said SpaceX would be worth more than Earth if it reached its goals.

According to estimates from S3 Partners, investors had shorted about 206 million SpaceX shares, roughly 32% of the public float. A week earlier, short interest stood at 185 million shares, or about 29% of float. A month earlier it was just 40 million shares, less than 7% of tradable stock.

The stock reached a record high above $225 in its first days of trading but has given up most of those gains since. It closed below its $135 IPO price for the first time last week, during a seven-day losing streak. The streak ended Tuesday amid a broad market rally. On Wednesday the stock dropped nearly 7% to a record low of about $115. The slide cost Musk his status as a trillionaire.

Several index providers fast-tracked SpaceX into their benchmarks. As a result, index funds held in many retirement accounts own the stock and carry losses on it.

New Businesses Hiring Fewer Workers, Bank of America Finds

A Bank of America Institute report released this week found that Americans are starting more businesses but hiring fewer people to staff them. Business applications were up about 15% year over year as of June.

The share of new businesses planning to pay wages has been declining. That has widened a gap that has developed over recent years as more companies launch with leaner operating models.

The bank’s researchers suggested AI may be part of the reason. They said founders who can automate administrative work, bookkeeping or content creation with AI and other digital tools may need fewer employees at the start than in past startup cycles. That would account for headline applications rising while applications with planned wages lag.

Other Markets: Dollar Gains, Gold and Bitcoin Fall

The U.S. dollar index rose 0.3% to 101.44 as expectations for higher U.S. interest rates increased.

Gold futures fell 2.5% to $4,050 an ounce.

Bitcoin traded around $64,700, below overnight highs near $66,300.

In the bond market, the 10-year Treasury yield rose more than four basis points to its highest level since January 2025. In energy, Brent crude rose 6.2% to just under $100 a barrel by 4 p.m. ET, and WTI gained 5.4% to $91.50.

What Comes Next

Intel was scheduled to report results after Thursday’s close. Analysts surveyed by Visible Alpha expected growing revenue and profits on demand for its AI hardware.

The Federal Reserve meets next week. Traders priced a 36% chance of a rate hike at that meeting and an 82% chance of at least a quarter-point hike by the September meeting, according to CME Group’s FedWatch tool.

In energy markets, attention remains on whether the Houthi attacks on shipping continue and on how the U.S. follows through on President Trump’s warning to Iran and the Houthis. The S&P 500’s level and longer-term performance are tracked on the S&P 500 index page.