Nasdaq falls 2.15% as AI cash costs and $100 oil trigger broad sell-off

Alphabet and Tesla turned free-cash-flow negative while Brent crossed $100 on Red Sea tanker strikes, wiping about $888 billion off the seven largest tech names

Deepakshi

Kristal Research & Marketing team

24 Jul2 min

Key takeaways — AI summary

The S&P 500 fell 1.21% to 7,408 and the Nasdaq dropped 2.15% to 25,138, its biggest one-day fall in a month, as the seven largest tech names shed roughly $888 billion in market value — their worst day since April 2025.
Alphabet and Tesla both spent more cash than they earned last quarter; Alphabet raised its 2026 spending plan to as much as $205 billion (and drew a roughly $1 billion EU fine) and fell 7.12%, while Tesla's capital spending topped $25 billion and the stock dropped 14.52%.
Brent crude crossed $100 for the first time since May — up about 30% from early July per Bloomberg — after Houthi militants said they struck two Saudi tankers, the Encelia and Layla, in the Red Sea.
The 10-year Treasury yield rose to about 4.70%, its highest since January 2025, while weekly jobless claims fell to 187,000, the lowest since 1969, complicating the Fed's path ahead of next week's meeting.
Defense and industrials outperformed: Lockheed Martin rose 11.02% on a record $230 billion backlog, RTX gained 7.07%, and Cleveland-Cliffs jumped 17.88%; Albertsons (-21.88%) and STMicroelectronics (-18.64%) led decliners.

Generated by Kristal AI · reviewed by the research desk

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