Tesla, Alphabet lose hundreds of billions in value in post-earnings stock plunge
Alphabet and Tesla results revived worries about heavy AI spending, while Brent crude above $100 a barrel lifted inflation fears.
- On Thursday, July 23, 2026, Wall Street indexes closed lower as Tesla and Alphabet shares tumbled following disappointing earnings reports. The Nasdaq Composite sank more than 2 per cent, while the S&P 500 fell more than 1 per cent.
- Tesla shares tumbled 14.5 per cent after reporting negative free cash flow for the first time in more than two years, while Alphabet sank 7 per cent amid higher spending plans and cash burn.
- Industrials rose 1.77 per cent, boosted by Lockheed Martin and RTX, which rallied 10.5 per cent and 7.3 per cent respectively after raising 2026 forecasts. Texas Instruments fell 3 per cent despite forecasting quarterly revenue above estimates.
- Soaring oil prices amplified inflation worries, with Brent crude futures settling above US$100 a barrel for the first time since May. Intensifying Middle East hostilities, including US air strikes on Iran and Iranian fire at US bases, fanned global supply concerns.
- The CBOE Volatility Index rose to 20.3, its highest level in almost a month, while traders bet on a roughly 64 per cent probability the Federal Reserve will keep interest rates unchanged next week. US 10-year yields reached their highest levels since early 2025.
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AI spending rattles investors as US tech giants face post-earnings sell-off
Shares of Alphabet and Tesla plunged on Thursday after both companies reported negative free cash flow in their latest quarterly earnings and signaled plans for even heavier investment in artificial intelligence.
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