Two different, but equally strong, concerns struck simultaneously Wall Street Thursday: the new launch of oil over $100 the barrel and increasing doubts as to whether the vast investments of technological colossae in artificial intelligence will soon yield.
The Dow Jones industrial index was retreating by more than 600 units or 1.2%, S&P 500 was losing 1.4%, while Nasdaq was recording a 2.3% drop, with the biggest pressures concentrated on technology shares.
The Tesla was sinking by 14%, On the way to a $201 billion stock market loss in a meeting. Alphabett was retreating by 6.5%, while significant losses were also recorded by Amazon, Microsoft, Meta, Texas Instromints, and Indel.
Triple «explosive mechanism» the foundations of the international economy
Brent broke the $100 barrier.
The new escape from the risk was initially triggered by the sharp rise in oil prices, following the announcement by the Huthi that attacked two Saudi oil tankers in the Red Sea.
Brent's contracts were reinforced up to 8%, surpassing $100 a barrel, while the American slow WTI was rising about 6% and negotiating over $92.
Prices thus returned to the highest levels of the interim agreement concluded by the United States and Iran last month to end the war. The market, however, now sees the risk of a wider ignition coming back, as neither Washington nor Tehran show a de-escalation mood.
Concerns were raised by Donald Trump, who warned that the United States would destroy an Iranian bridge or power plant for every new attack on board the Straits of Hormuz.
Later, the American president told Axios that he is considering a «mass attack» I should like to thank the rapporteur for his report. «greater than ever», adding that it is close to making a decision.
Oil increases money costs
The ejecting of the crude was not limited to the energy market. It also went directly into the bonds, as investors fear that the most expensive oil will revive inflation and force the US central bank to keep interest rates high or even move on to new increases. The ECB is ready to increase its own interest rates
The ten-year American bond performance exceeded 4.7%, reaching the highest level since January 2025. The two-year title performance moved over 4.35%, reflecting expectations for a more rigorous monetary policy.
Money markets now yield about 35% in interest rate increases even at the next Fed meeting, compared to just 10% a week ago. An increase by September is almost fully discounted.
«It is difficult to ignore the conflict, not only because of oil prices but also because of pressure on the entire yield curve», commented Ross Mayfield, an investment strategic analyst for Baird. As he estimated, for the next two or three months markets will again revolve around Iran.
Alphabet reopened the debate on «black hole» AI
Geopolitical shock coincided with a new test for the shares of technological colossae.
The Alphabet announced strong results, but her share was in a free fall, as Google's motherboard increased its forecast of capital spending of 2026 to 195 to 205 billion dollars, from 180 to 190 billion previously.
The company attributed the increase to strong demand for artificial intelligence infrastructure. Investors, however, appear increasingly wary of the huge amounts that cloud's largest groups channel into data centers, microchip and computing power.
Alphabet, Meta, Microsoft and Amazon have announced total spending that may reach $725 billion within the year to develop their ambitions in AI.
The market now asks for tangible evidence that these investments create new revenue and are not limited to a cost race that is pushing profitability and cash flow.
Tesla lost 201 billion dollars
Even stronger was the blow for Tesla, which retreated by 14% after the lowest expected results of the second quarter.
The company recorded a major loss in profits, while its operating costs increased faster than revenues. Capital expenditure amounted to $5.8 billion, mainly due to investments in artificial intelligence and robotics, leading the company to negative free cash flows for the first time in two years.
Both Tesla and Alphabet showed negative free cash flows in the second quarter, which boosted the concern that even the strongest market companies are beginning to feel the weight of the investment race.
Thursday's meeting thus highlighted the new, difficult equation for Wall Street: an oil over $100 threatens to restore inflation and interest rate increases, while technology is called upon to prove that the most expensive investment battle of its history can indeed turn into profits.
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