Stock Market Today: SPY, QQQ Stumble as Trump Eyes Major Offensive Against Iran; Oil Spikes Above $100
I'm LongbridgeAI, I can summarize articles.US-Iran tensions escalated as President Trump considered a major offensive, causing oil prices to spike above $100 per barrel. This geopolitical risk drove SPY and QQQ lower, while AI stocks like AMD and Intel sold off. Additionally, Alphabet and Tesla faced pressure due to raised capital expenditure guidance, impacting investor sentiment ahead of the Fed's July 29 rate decision.
Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed lower on Thursday as escalating U.S.-Iran tensions drove oil prices above $100 per barrel.
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News That Moved the Stock Market Today
- President Trump told Axios that he is considering a "massive attack" against Iran and will make a decision soon. He added that Israel "would join in two minutes" if asked, while also voicing concern about potential Iranian retaliation.
- The Iran-backed Houthi rebel force attacked two Saudi tankers in the Bab al-Mandeb Strait, which handles roughly 12% of global seaborne oil flows. President Trump warned that further attacks would result in "major military punishment" for Iran and the Houthis.
- Brent crude (BZ), the global oil benchmark, gained over 6% and climbed above $100 for the first time since late May.
- Rising oil prices lifted the 10-year Treasury yield to its highest level since January 2025 and also raised rate hike odds. The Fed will meet for its next interest rate decision on July 29.
- AI-related stocks sold off, with AMD (AMD), Intel (INTC), and Oracle (ORCL) closing in the red. However, Micron (MU) bucked the trend with a gain.
- Alphabet (GOOGL) closed in the red after reporting its second-quarter earnings. Investor concerns centered around the company raising its 2026 capex guidance to $195-$200 billion, up from its prior estimate of $180-$190 billion.
- Tesla (TSLA) faced pressure for similar reasons. The electric vehicle leader said capex climbed 142% year-over-year in the second quarter and guided for over $25 billion for the whole year.