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U.S. equities fell on Thursday, as oil prices surged amid escalating conflict in the Middle East, while investors weighed quarterly results from two of the largest companies in the world.
The Dow Jones Industrials slumped 547.67 points to 51,670.91.
The S&P 500 gave back 82.45 points, or 1.1%, to 7,417,24
The NASDAQ Composite plunged 509.98 points to 25,180.92.
Equities were also weighed down by a 7% slide in Alphabet shares after the Google parent lifted its forecast for 2026 capital expenditures to as high as $205 billion, pointing to strong artificial intelligence demand.
The increase comes as investors have grown more cautious in recent months about hyperscalers’ spending around the AI effort.
Tesla also dropped more than 13% after the electric vehicle maker posted a big earnings miss for the second quarter. The company’s operating expenses also rose faster than revenue during the period.
Oil prices put more pressure on stocks, as they soared after Yemen’s Tehran-backed Houthi militant group claimed attacks on two Saudi Arabian tankers in the Red Sea, fueling concerns about an expansion of the conflict in the Middle East.
Prices also moved higher after U.S. President Donald Trump threatened to bomb Iranian infrastructure.
Prices for the 10-year Treasury fell sharply, raising yields to 4.71% from Wednesday’s 4.66%. Treasury prices and yields move in opposite directions.
Oil prices popped $4.45 to $91.28 U.S. a barrel.
Gold prices gave back $101.20 to $4,050.70 U.S. an ounce.
