Why Is the Stock Market Down Today, 7/23/26?
Complete. Here is the key summaryUS stock markets declined on July 23, 2026, driven by Middle East tensions pushing oil above $100 and fueling inflation fears. The S&P 500 and Nasdaq 100 fell as geopolitical risks disrupted energy supplies. Additionally, tech giants faced pressure: Tesla dropped over 10% after weak earnings, while Alphabet slid due to concerns over excessive AI capital expenditure guidance.
Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are trading lower on Thursday as higher tensions in the Middle East drive both energy prices and inflation fears higher.
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Brent crude (BZ), the global oil benchmark, is back above $100 per barrel for the first time since late May. That came after the Houthi military group said it struck two Saudi tankers approaching the Bab al-Mandeb Strait. Around 12% of global seaborne oil flows through the waterway. The attack creates another potential disruption point for global energy markets.
U.S.-Iran Tensions and AI Spending Concerns Grow
Meanwhile, traffic through the Strait of Hormuz remains severely restricted. Shipowners have continued to avoid the strait for fear of being targeted by Iran.
Elsewhere, the Magnificent 7 is pulling the market lower. Tesla (TSLA) is down by over 10% after its second-quarter earnings failed to resonate with investors. In addition, Alphabet (GOOGL) is facing pressure after it boosted its 2026 capex guidance to $195-$200 billion, up from $180-$190 billion. That's heightened concerns that tech giants are investing too much in the AI buildout without a clear path to strong returns.