Nasdaq Drops 2.1% for Second Weekly Loss as Oil Surge and AI Capex Fears Hit Stocks
Updated
Updated · CNBC · Jul 25
Nasdaq Drops 2.1% for Second Weekly Loss as Oil Surge and AI Capex Fears Hit Stocks
3 articles · Updated · CNBC · Jul 25
Summary
The Nasdaq fell 2.1% and the S&P 500 lost 0.6%, marking a second straight weekly decline as investors absorbed Middle East escalation, rising crude and uneven earnings.
Brent briefly topped $100 a barrel after threats tied to Iran and Houthi attacks on Saudi tankers, lifting inflation worries and pushing markets to price a nearly 35% chance of a Fed rate hike next week, up from 13%.
Alphabet sharpened concern over AI spending discipline: despite strong results and 82% Google Cloud growth, the stock slid 7% after it raised 2026 capex guidance to $195 billion-$205 billion and signaled more spending in 2027.
Intel, GE Vernova and Dover showed the market's selective response to AI-linked names, with investors rewarding demand signals like Intel's 59% data-center revenue growth and GE Vernova's 88% order jump less than hoped while still punishing execution misses.
Outside tech, Eli Lilly gained on late-stage obesity-drug data and Johnson & Johnson rose after early FDA approval for its Ottava robot, underscoring that healthcare remained one of the week's few bright spots.