Stock futures slip as investors eye more earnings; Alphabet falls on higher capex outlook: Live updates - CNBC

What the report says

CNBC reported that U.S. stocks closed lower Thursday as investors reacted to major corporate earnings, renewed worries over artificial intelligence-related spending and a sharp rise in oil prices tied to Middle East tensions. The Dow Jones Industrial Average fell 506.93 points, or 0.97%, to 51,711.65. The S&P 500 dropped 1.21% to 7,408.30, and the Nasdaq Composite lost 2.15% to 25,137.69.

Technology shares were a key drag. Alphabet fell 7% after the Google parent raised its 2026 capital spending outlook to $195 billion to $205 billion, up from a previous range of $180 billion to $190 billion, citing strong AI demand. CNBC said the move added to investor unease over the scale of hyperscaler spending on AI. Tesla slid 14% after a second-quarter earnings miss and faster growth in operating expenses than revenue. CNBC also noted that both Tesla and Alphabet posted negative free cash flow in the quarter.

Oil prices surged after Yemen’s Tehran-backed Houthi group claimed attacks on two Saudi tankers in the Red Sea, heightening fears that conflict could spread. CNBC reported that Brent crude settled up 7% at $100.69, while U.S. West Texas Intermediate rose 6% to $92.19. The outlet also cited President Donald Trump’s Truth Social threat to strike Iranian infrastructure if Iran fires on ships in the Strait of Hormuz, and an Axios report saying he was considering a larger attack.

Rising energy prices also pushed Treasury yields higher, with the 10-year yield briefly above 4.7%. CNBC cited CME FedWatch data showing traders saw a more than 80% chance of a September rate increase, underscoring concern that higher oil prices could complicate the Federal Reserve’s inflation fight.