Updated
Updated · CNBC · Jul 21
S&P 500 Edges Up 0.2% as Oil Tops $93 and Earnings Test AI Valuations
Updated
Updated · CNBC · Jul 21

S&P 500 Edges Up 0.2% as Oil Tops $93 and Earnings Test AI Valuations

3 articles · Updated · CNBC · Jul 21

Summary

  • The S&P 500 rose 0.2% and the Dow added 185 points, while the Nasdaq hovered near flat as investors balanced a fresh oil spike against a heavy earnings slate.
  • Brent crude climbed 2% above $93 a barrel—briefly topping $95—after the 11th straight round of U.S. strikes against Iran, reviving worries that energy costs could keep inflation high.
  • Fed-rate concerns stayed in focus, with futures implying a 31% chance of a hike this month and a 74% chance of at least a quarter-point increase in September.
  • Alphabet, Tesla, IBM, ServiceNow and Texas Instruments were due later Wednesday, with investors looking for signs that AI and cloud spending can sustain rich tech valuations into the second half.
  • Single-stock moves reflected that scrutiny: Super Micro jumped 24% after citing more than $60 billion in new orders, AT&T gained 3% on an earnings beat, and GE Vernova fell 5% after missing estimates.

Insights

With 90% of AI pilots failing, can tech giants' earnings truly justify the market's AI-driven rally?
Can the Federal Reserve tame war-fueled inflation without derailing the fragile, AI-hyped economic growth?
As U.S.-Iran strikes escalate, is the global economy prepared for a prolonged closure of the Strait of Hormuz?