Equities Slip as Crude Oil Surges to Six‑Week High

On Wednesday, the S&P 500 Index ($SPX) (SPY) slipped 0.14%, the Dow Jones Industrial Average ($DOWI) (DIA) fell 0.01%, and the Nasdaq 100 Index ($IUXX) (QQQ) dropped 0.54%. September E‑mini S&P futures (ESU26) slipped 0.07%, while September E‑mini Nasdaq futures (NQU26) declined 0.48%.

Equities declined on Wednesday as climbing crude prices lifted bond yields, pressuring markets. WTI crude oil (CLU26) surged more than 2% to a six‑week high, driven by diminished expectations for peace talks between the United States and Iran and ongoing supply disruptions. The 10‑year Treasury note yield rose to a two‑month peak of 4.66% amid the rally in oil prices.

A decline in software and cybersecurity shares added to the downside pressure on Wednesday. Investors are awaiting Alphabet’s post‑market earnings to assess whether its AI expenditures are delivering returns, especially as the company prepares to more than double capital spending from 2025 to as much as $190 billion. Meanwhile, most chip makers posted gains, and energy producers and service firms rose alongside the jump in WTI crude oil to a six‑week high.

MBA mortgage applications increased 1.9% in the week ending July 17, with the purchase‑mortgage component up 5.5% and the refinancing component down 2.4%. The average 30‑year fixed‑rate mortgage rose 4 basis points to 6.69%, the highest level in 11 months, compared with 6.65% the prior week.

Expectations for robust second‑quarter earnings, which kick off this week, are supporting equities. Bloomberg Intelligence projects a 23% rise in Q2 earnings, approaching the 30% surge seen in Q1—a figure more than double the 12% consensus. AI‑related spending is expected to drive most of this growth, with AI infrastructure stocks contributing roughly 60% of the S&P 500’s EPS expansion. To date, 89% of S&P 500 firms that have reported Q2 results have exceeded analysts’ forecasts, according to Bloomberg data.

Markets are pricing in a 34% probability of a 25‑basis‑point rate hike at the upcoming FOMC meeting on July 28‑29.

Global markets were mixed on Wednesday. The Euro Stoxx 50 rose 0.50% to a two‑week high, while China’s Shanghai Composite edged up 0.07%. Japan’s Nikkei‑225 slipped 0.18%.

Interest Rates

September 10‑year Treasury notes (ZNU6) fell 7 ticks, pushing the 10‑year yield up 3.3 basis points to 4.661%. Yields touched a 2‑month high of 4.663%, as the notes slipped to a 17‑month low amid the rise in WTI crude oil, which lifted inflation expectations and reinforced a hawkish stance for the Federal Reserve. The 10‑year breakeven inflation rate climbed to a weekly peak of 2.290%. Additionally, modest demand for the Treasury’s $13 billion 20‑year bond auction, with a bid‑to‑cover ratio of 2.64 versus the 10‑auction average of 2.65, weighed on note prices.

European government bond yields rose on Wednesday. Germany’s 10‑year bund yield climbed to a two‑month high of 3.192%, ending at 3.171% (+0.8 bp). The UK’s 10‑year gilt yield reached a two‑month high of 5.065%, finishing at 5.034% (+0.4 bp).

UK June CPI eased to 2.6% year‑over‑year from 3.8% in May, below the 2.7% consensus and the slowest rise in 15 months. However, June core CPI remained unchanged at 2.6% year‑over‑year, exceeding the 2.5% forecast.

Swaps are pricing in a 5% chance of a 25‑basis‑point ECB rate hike at Thursday’s policy meeting.

US Stock Movers

Technology shares were under pressure Wednesday, dragging the broader market lower. ServiceNow (NOW) and Palantir Technologies (PLTR) each fell more than 6%, leading declines in the Nasdaq 100. Atlassian Corp (TEAM) and Salesforce (CRM) dropped over 5% and 4% respectively, anchoring losses in the Dow Jones Industrial Average. Adobe Systems (ADBE), Datadog (DDOG), Autodesk (ADSK), Thomson Reuters (TRI) and Microsoft (MSFT) also slid 3% or more.

Cybersecurity stocks also declined, with Zscaler (ZS) down over 4% and Okta (OKTA) slipping more than 3%. CrowdStrike Holdings (CRWD), Palo Alto Networks (PANW), Fortinet (FTNT) and Cloudflare (NET) each fell around 1%.

Semiconductor and AI‑infrastructure issues posted gains, with Broadcom (AVGO) and NXP Semiconductors (NXPI) each rising over 2% and Nvidia (NVDA) up more than 2%, topping the Dow Jones Industrial Average. Advanced Micro Devices (AMD), Seagate Technology (STX), Analog Devices (ADI), Western Digital (WDC), Marvell Technology (MRVL) and Qualcomm (QCOM) also climbed over 1%.

Energy equities and service providers rose Wednesday as WTI crude oil climbed over 2% to a six‑week high. SLB Ltd (SLB) gained more than 2%, while Chevron (CVX), ConocoPhillips (COP), Devon Energy (DVN), Diamondback Energy (FANG), Occidental Petroleum (OXY) and APA Corp (APA) each rose over 1%.

Pegasystems (PEGA) fell over 16% after reporting first‑quarter adjusted earnings per share of $0.35, missing the consensus estimate of $0.44.

GE Vernova (GEV) slipped over 8%, topping losers in the S&P 500 after reporting second‑quarter adjusted EBITDA of $1.25 billion, below the $1.29 billion consensus.

Reddit (RDDT) dropped more than 8% after the Wall Street Journal reported that the company has explored restricting Google’s access to its content for AI training.

TE Connectivity (TEL) fell over 4% after announcing a definitive agreement to acquire Astrodyne TDI for approximately $1.4 billion.

Chubb (CB) slipped over 3% following second‑quarter net premiums written of $14.71 billion, short of the $14.98 billion consensus.

Northern Trust (NTRS) fell over 3% after reporting second‑quarter non‑interest expenses of $1.64 billion, above the $1.51 billion consensus.

Super Micro Computer (SMCI) surged over 19%, topping the S&P 500, after reporting a record backlog and receiving more than $60 billion of new orders in Q4.

Westinghouse Air Brake Technologies (WAB) rose over 10% after reporting second‑quarter net sales of $3.18 billion, beating the $3.07 billion forecast, and raising its full‑year sales outlook to $12.30–$12.60 billion from $12.19–$12.49 billion.

EQT Corp (EQT) gained over 8% after reporting second‑quarter adjusted EBITDA of $1.20 billion, above the $1.11 billion consensus.

CME Group (CME) rose 5% after reporting second‑quarter adjusted EPS of $2.99, exceeding the $2.90 consensus.

DigitalOcean Holdings (DOCN) climbed over 4% after Stifel upgraded the stock from Hold to Buy, setting a $160 price target.

CoreWeave (CRWV) rose over 3% following Truist Securities’ upgrade from Hold to Buy, with a $126 price target.

AT&T (T) increased over 3% after reporting second‑quarter wireless postpaid phone net additions of 432,000, surpassing the consensus of 325,264.

Earnings Reports (July 23, 2026)

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