Gokhan Ergocun
24 July 2026•Update: 24 July 2026
The New York Stock Exchange closed lower as the financial reports from major tech companies reignited concerns about AI spending, and rising geopolitical risks in the Middle East pushed up oil prices, intensifying inflation fears.
The Dow Jones industrial average fell 0.97%, or 506.93 points, to close at 51,711.65.
The S&P 500 dropped 1.21%, or 90.66 points, to finish at 7,408.30, while the Nasdaq Composite lost 2.15%, or 553.21 points, to end the day at 25,137.69.
The Volatility Index (VIX), often referred to as the market’s “fear index,” went up by 9.05% to 17.68.
The financial results of major tech companies kicking off earnings season in the US reignited concerns regarding spending on AI.
Alphabet, which reported its earnings after the market closed on Wednesday, saw its second-quarter revenue rise 24% compared to the same period last year.
Alphabet, which reported an 82% increase in Google Cloud revenue driven by demand for AI infrastructure and solutions, raised its 2026 capital expenditure forecast from the $180–190 billion range to the $195–205 billion range; Alphabet shares fell 6.9%.
US electric vehicle manufacturer Tesla also saw its revenue rise 26% year-over-year in the second quarter, but the company’s net income fell 5%.
Tesla, which has been increasing its investments in AI, autonomous driving, and production infrastructure, saw its capital expenditures rise 142% year-over-year to $5.79 billion during the period, while its free cash flow turned negative, Tesla’s shares also lost 14.5% in value.
Escalating tensions in the Middle East also remained a key concern for investors; the Axios news site reported that US President Donald Trump was seriously considering a large-scale attack against Iran.
Concerns that escalating tensions between the US and Iran could disrupt oil shipments through the Strait of Hormuz, coupled with increased security risks in the Strait of Bab el-Mandeb following the Iran-backed Houthis’ naval blockade of Saudi Arabia in Yemen, contributed to the renewed rise in oil prices.
As of 0800GMT, the futures price for a barrel of Brent crude rose by 6.5% to $100.20.
European markets
European stocks saw big increases, with the pan-European Stoxx Europe 600 index decreased 1.18% to close at 639.27 points.
The UK’s FTSE 100 lost 0.73% to 10,639.17, Germany’s DAX 40 dropped 1.56% to 24,763.12 points, while France’s CAC 40 declined 1.64% to 8,299.09.
Italy’s FTSE MIB 30 went down by 2.8% to 51,315.84 points, and Spain’s IBEX 35 fell 1.55% to 19,267.00 points.
