U.S. equity futures 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.

Futures tied to the Dow Jones Industrial Average(DJI.US) lost 345 points, or 0.7%. S&P 500 index(SPX.US) futures dropped 0.6%, while NASDAQ-100(NDX.US) futures lost 0.9%.

Alphabet Inc. Class A(GOOGL.US) shares slid more than 5% to reach their low of the session 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 Motors, Inc.(TSLA.US) tumbled more than 7%, also hitting its session low, 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.

Brent crude futures for July delivery gained 5% to trade above $99 per barrel, while U.S. West Texas Intermediate crude futures advanced 4% to above $90 per barrel. Both Brent and WTI were trading at their highest levels since before the U.S. and Iran reached an agreement to bring their war to an end last month.

“Inflation has remained top of the agenda for markets this morning, with Brent crude moving up ... as the Middle East escalation continues,” Deutsche Bank’s Jim Reid wrote in a note on Thursday morning.

Treasury yields rose alongside oil prices, with the 10-year yield reaching its highest level since January 2025.

“Indeed, the strikes between the U.S. and Iran show no sign of easing, and the Houthis said they targeted two oil tankers in the Red Sea yesterday, raising fears that the conflict is widening. So that’s pushed oil prices up to a 7-week high and has also fueled speculation about more rate hikes.”

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As of 03:52 PM Riyadh Time, top pre-market movements are as follows:

Oil surges as Trump threatens Iran

• International oil prices jumped 3% on July 22 after US President Donald Trump threatened to bomb Iranian civilian facilities.
• US attacks on infrastructure will prompt Iran to block all Strait of Hormuz oil exports, says Iranian military command.
• Yemen's Houthi rebels attacked two Red Sea oil tankers, claiming it spreads US-Iran tensions.

Fed May Hike Rates on Oil

• Rising oil prices may force the Federal Reserve to resume rate hikes, potentially stalling US stocks.
• Bitcoin fell Thursday as oil and Treasury yields climbed; the Clarity bill's passage chance dropped to 38%.

Paulson: Gold's Bull Market Has Just Started

• John Paulson says SPDR Gold(GLD.US) is early in a long-term uptrend, citing macro factors.
• UBS sees gold rising to US$4,675 by end-2026, citing improving sentiment with higher prices and 20% surge in Chinese gold stocks.
• Gold and silver prices recovered slightly after sustained selling, but analysts say sustained rise to record highs is extremely unlikely.

Trump Warns Gov Shutdown in Sept

US President Trump said on July 22 a federal shutdown would happen over spending disputes between parties.

Semiconductor Gear Leads Double Amid Order Surge

Equipment delivery times doubled as global chipmakers like Samsung and SK hynix Inc. Sponsored ADR(SKHY.US) rush orders, citing fab investments.

Musk Hints Tesla-SpaceX Merger

• Tesla Motors, Inc.(TSLA.US) CEO Musk said on Wednesday he doesn't rule out merging with SpaceX due to increasing business overlap.
• SpaceX(SPCX.US) supports orbital AI development while JP Morgan's Dimon assesses risks and a repair mission is underway. Read in detail>>
• Tesla Motors, Inc.(TSLA.US) takes a back seat as Elon Musk's DOGE position shifts investor focus in the Musk universe. Read in detail>>
• ARK loads SpaceX while unloading Robinhood(HOOD.US) shares despite Musk's short-seller warning. Read in detail>>
• SpaceX(SPCX.US) and Alphabet Inc. Class A(GOOGL.US) may partner to build orbital data centers by 2026, per speculation. Read in detail>>

AMD Bets Big on Anthropic

Advanced Micro Devices, Inc.(AMD.US) will invest up to US$50 billion in Anthropic and partner to supply computing power.

Meta COO olivan sells US$947K shares

Meta Platforms(META.US) COO Javier Olivan sold US$946,817.45 in common shares, according to a recent filing. Read in detail>>

CoreWeave exec unloads US$11M shares

CoreWeave(CRWV.US)'s Chief Development Officer Brannin McBee sold US$11.05 million in Class A common stock. Read in detail>>

Domo Must Pay Progress US$13.5M Fee

DOMO, INC.(DOMO.US) will be required to pay Progress a termination fee equal to US$13.5 million under certain circumstances. Read in detail>>

GOOGL Or TSLA After Q2?

Alphabet Inc. Class A(GOOGL.US) shines with steady cash flow, while Tesla Motors, Inc.(TSLA.US) burns cash, facing trading dilemmas. Read in detail>>

Intel CFO Promises Better Supply

Intel Corporation(INTC.US) CFO David Zinsner said supply would improve through the rest of the year, but Q2 earnings will test that forecast. Read in detail>>

Memory Chip Stocks Surge on Micron Forecast

Micron Technology, Inc.(MU.US), Sandisk Corporation(SNDK.US), and SK hynix Inc. Sponsored ADR(SKHY.US) shares jump after strong demand outlook for AI and memory chips. Read in detail>>

IBM's CEO Says Delays Are Over

IBM Corp(IBM.US) CEO Arvind Krishna views Q2 deal slippage as temporary, with postponed contracts now closing. Read in detail>>

Alphabet Q2 Earnings Top Estimates

• Alphabet Inc. Class A(GOOGL.US) reported Q2 2026 revenue of US$84.7B and earnings of US$1.89 per share, beating analyst expectations. Read in detail>>
• Alphabet began recognizing TPU sales revenue in Q2; due to capacity constraints, it plans third-party capacity expansion in Q3. Read in detail>>
• Alphabet shares are trading lower after reporting Q2 financial results that disappointed investors. Read in detail>>
• Alphabet CFO said demand still outpaces capacity, boosting AI infrastructure stocks. Read in detail>>
• Alphabet Inc reported US$112 billion quarterly profit partly boosted by US$8 billion gains from SpaceX and Anthropic investments. Read in detail>>
• Company saw first cash burn in Q2 from heavy AI spending, shifting from asset-light to capital-intensive model.

Tesla's FSD Subscription Fuels Demand

• Tesla Motors, Inc.(TSLA.US) CEO Elon Musk called its Full Self-Driving subscription a major demand driver, noting a massive CAPEX year ahead. Read in detail>>
• Tesla Inc CFO projects capital expenditure will keep expanding for the next two or three years. Read in detail>>
• Tesla kept Bitcoin unchanged in Q2 2024 despite a US$112m paper loss. Read in detail>>
• Tesla calls spending the "fastest industrial scale-up since WWII," with 2026 shaping up as a "massive CapEx year." Read in detail>>
• Elon Musk says scaling manufacturing for Optimus robot will be difficult. Read in detail>>

IBM Predicts 4%-5% Growth

• IBM Corp(IBM.US) forecasts 2026 revenue growth of 4%-5%. Read in detail>>
• IBM shares lost 7% after Q2 2026 earnings missed analyst revenue and profit estimates amid cautious enterprise spending. Read in detail>>
• IBM expects Q3 constant currency revenue growth consistent with the full year, with a 1.5-point dollar headwind due to strengthening currency. Read in detail>>

Intel Pushes Ohio Fab Forward

Intel Corporation(INTC.US) is seeking operating partners for its Ohio chip plant per Semafor, aiming to share costs and reduce financial risk. Read in detail>>

ServiceNow Q2 results beat estimates

• ServiceNow, Inc.(NOW.US) reported Q2 2026 earnings with revenue and profit exceeding analyst expectations, driven by strong subscription growth. Read in detail>>
• ServiceNow CEO reveals a new conversational service desk experience announcement is coming. Read in detail>>
• ServiceNow CFO expressed confidence in Q3 and full-year forecasts. Read in detail>>
• ServiceNow invests US$40M in Indian specialist BusinessNext to fill its banking software portfolio.

Nokia Q3 Sales Beat Est

• Nokia Oyj Sponsored ADR(NOK.US) guided Q3 sales at US$5.766B-US$5.990B vs US$5.830B estimate. Read in detail>>
• Nokia posted adjusted EPS of US$0.08, beating the US$0.07 estimate, while sales of US$5.598B topped the US$5.590B forecast. Read in detail>>
• Nokia set its comparable operating profit range at EU£ 2.1B to EU£ 2.6B, reaffirming its full-year guidance. Read in detail>>

Rocket Lab's Q2 2026 earnings due

Rocket Lab(RKLB.US) will report Q2 2026 results after market close, followed by a conference call. Read in detail>>