US stocks declined Wednesday as investors anticipated earnings from Alphabet and Tesla post-market close, with fresh tariffs and rising oil prices dominating the discussion.
The Dow Jones Industrial Average edged below flat in late trading, while the S&P 500 fell 0.1%. The Nasdaq Composite, skewed toward tech, dropped 0.5%, marking a reversal from previous gains on Wall Street.
Later Wednesday, a potential tech recovery faces a critical test as Alphabet and Tesla release their second-quarter earnings. Investors are evaluating whether Google’s AI investments translate to revenue gains, while Tesla’s automation initiatives and capital expenditures will be key focus areas.
Other key earnings highlights include Supermicro’s shares surging after reporting a record backlog. IBM is set to report Q2 results following a recent pre-earnings warning that led to a significant stock decline. GE Vernova, the power and electrification leader, exceeded revenue expectations and reported a growing order book but fell short on per-share earnings.
In related developments, President Trump has signaled openness to replacing temporary 10% global tariffs with longer-term duties, potentially including a 100% tariff on imported generic medications. A new 25% tariff on Brazilian goods took effect Wednesday.
Oil prices climbed further as the US maintained its 11th consecutive night of airstrikes in Iran. Defense Secretary Pete Hegseth revealed to Congress that the operation has cost $37.5 billion to date, with recent escalations raising concerns.