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Major stock indexes finished lower Wednesday ahead of several Big Tech earnings reports after the closing bell. Meanwhile, 10-year Treasury yields hit their highest level in two months amid inflation concerns as oil prices surged further.
The tech-focused Nasdaq Composite and benchmark S&P 500 closed down 0.6% and 0.1%, respectively, while the blue-chip Dow Jones Industrial Average finished fractionally lower. The trio closed higher yesterday following three consecutive sessions of losses, as chip stocks powered gains.
Investors were awaiting Big Tech earnings from Magnificent Seven members Alphabet (GOOGL) and Tesla (TSLA) after the closing bell. Shares of Google parent Alphabet and Elon Musk-led electric vehicle maker Tesla finished down more than 1% apiece before their results. (Read our live coverage of Big Tech earnings here.)
“The outcome of tonight’s reports will likely influence investor sentiment toward the broader AI ecosystem,” Siebert Financial CIO Mark Malek said in written commentary. “Subsequent technology earnings will be evaluated through the same lens.”
GE Vernova (GEV) shares ended about 8% lower and those of AT&T (T) rose 3.5% after they reported results before the bell Wednesday. International Business Machines (IBM), Texas Instruments (TXN), and ServiceNow (NOW) were slated to do so after markets close.
Shares of Super Micro Computer (SMCI), or Supermicro, soared about 20% to pace the S&P 500 after the maker of AI servers estimated gross margins in its recently completed fourth quarter would be roughly double their previous projection. Those of rival server makers Hewlett Packard Enterprise (HPE) and Dell Technologies (DELL) rose more thn 3% and nearly 10%, respectively.
Oil prices jumped as the U.S.-Iran conflict continued and U.S. Secretary of State Marco Rubio told reporters a meeting in the Philippines that the Middle East nation was “not serious about talks.” Later Wednesday, President Donald Trump wrote on Truth Social that “any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran.” West Texas Intermediate futures, the U.S. benchmark, advanced almost 3% at 4 p.m. ET to $86.75 a barrel, their highest level in six weeks. Brent crude futures, the global benchmark, were 3.4% higher to above $94 a barrel.
Meanwhile, the 10-year Treasury yield, which influences interest rates on a variety of consumer loans including mortgages, hit its highest intraday level since May 19 Wednesday at almost 4.67%, up about four basis points from Tuesday’s close. According to the CME Group’s FedWatch tool, traders are pricing in a 24% likelihood of a Federal Reserve rate hike at its meeting next week, up from less than 11% one week ago, and a 69% chance of at least a quarter-percentage-point rate hike at its September meeting, up from 48% a week ago.
Bitcoin was trading around $65,900, down slightly over the past 24 hours. The U.S. dollar index, which tracks the value of the greenback against a basket of foreign currencies, edged lower to 101.13. Gold futures rose 1.6% to $4,140 an ounce.
JULY 22, 2026 AT 07:20 PM GMT
There’s a New Benchmark Index for Digital Assets—And Bitcoin’s Not In It
The elephant in the crypto universe is getting snubbed.
S&P Dow Jones Indices, the index provider behind the S&P 500, and crypto investment shop Pantera Capital launched a new benchmark for digital assets yesterday called the S&P Pantera Digital Asset Index. It isn’t the first yardstick that aims to represent the crypto market, but it is likely among the more high-profile that doesn’t include bitcoin.
That’s by design—the 18-constituent index’s main feature is that it only includes tokens that show real-world use and whose underlying blockchains generate revenue, or “things that we think that matter for serious investors,” according to S&P Dow Jones Indices CEO Kathy Clay. “What we’re trying to bring are the same sort of principles that we have in our equity indexes into digital assets,” she said in an interview with CNBC.
Other high-profile benchmark indexes aim to represent the broader crypto market and end up bitcoin-heavy. For example, the Nasdaq CME Crypto Index has a near 77% weighting in bitcoin, and a 13% weighting in the next largest, ether. The FTSE Digital Asset All Cap Index similarly has bitcoin at a 75% weighting. That would make sense because the cryptocurrency’s market cap accounts for roughly 57% of the total market, per CoinGecko.
Read the full article here.
JULY 22, 2026 AT 07:04 PM GMT
Investors Looking for Insights on Tesla’s AI Initiatives
Tesla is expected to report a 19% increase in revenue over the second quarter of last year, as the EV maker continues sharpening its focus on AI.
The Elon Musk-led company is expected to report revenue of $26.29 billion for the latest quarter, along with adjust earnings 55 cents per share, up 15 cents from a year ago. Earlier this month, Tesla reported second-quarter delivery number that came in well above analysts’ estimates.
Morgan Stanley analysts said they see Tesla turning in a solid second quarter, but that investors will likely be more focused on updates to long-term projects. The analysts said the “key investor debate remains unchanged: can Robotaxi and Optimus progress quickly enough to justify an accelerating AI investment cycle?”
Meanwhile, speculation continues about a potential merger with SpaceX (SPCX), Elon Musk’s rocket, connectivity and AI company, which went public last month to great fanfare but has seen its share price sink in recent weeks.
JULY 22, 2026 AT 06:30 PM GMT
Google Cloud Revenue Is Expected to Have Soared in Q2
Wall Street analysts predict that Alphabet will report revenue growth of about 20% for the second quarter versus the like period last year, amid continued huge growth in its Google Cloud business.
Alphabet is expected to report earnings of $2.90 per share on revenue of $117.19 billion, according to analysts’ estimates compiled by Visible Alpha. Revenue in its Search business is seen coming in at $63.29 billion, while Google Cloud revenue, a key sign of demand for AI compute, is projected to have risen 65% to $22.50 billion. The projected revenue growth is similar to what the company recorded in the first quarter.
Analysts from HSBC recently wrote that they will be looking for insights into whether customers are looking to manage their AI expenses by using lower-cost models, along with how the company sees rising hardware prices affecting its spending plans.
JULY 22, 2026 AT 06:21 PM GMT
GM Stock Surges for 2nd Straight Session After Earnings
General Motors (GM) shares had a strong session yesterday after the automaker reported quarterly earnings. It's following that up with another good one.
GM stock is up 3.5% in mid-afternoon trading after surging 5% Tuesday following what Morgan Stanley analysts called a "beat, raise, repeat" earnings report.
The analysts wrote in a note to clients that GM's software and services business "is an underappreciated growth driver," adding that it "has the potential to drive a significant re-rating in the shares as the company accretes high margin revenue through the P&L, and continues to add disclosure around the outlook for this business."
With its two-day surge, GM stock has moved into positive territory for 2026.
JULY 22, 2026 AT 05:29 PM GMT
Taco Bell’s Foot-Traffic Decline Worse Than Previously Indicated, Placer.ai Says
The decline in foot traffic to Taco Bell locations after a lettuce recall was steeper than previously indicated, Placer.ai says.
On Monday, Placer.ai said its data indicated that as of last Friday, July 17, foot traffic was down by 18.9% at Taco Bell compared with the day-of-the-week average between Jan. 1 and July 6.
However, the company said it “discovered a bug that caused data discrepancies in the visit data” for Taco Bell and other restaurant chains. The corrected figure indicates foot traffic at the Mexican-inspired chain dropped 30.9% over that time frame—and remained lower. New Placer.ai data says foot traffic was down 29.8% as of Saturday, July 18.
Last Thursday, the U.S. Food & Drug Administration announced an investigation into an outbreak of Cyclospora illnesses linked to certain shredded iceberg lettuce from Mexico served at Taco Bell locations in Indiana, Kentucky, Michigan, Ohio, and West Virginia. According to the FDA, Cyclospora “is a parasite that is so small it can only be seen under a microscope,” but people can get an intestinal illness called cyclosporiasis when they eat food or drink water that’s contaminated with it.
Shares of Taco Bell parent Yum! Brands (YUM) rebounded 1.5% today but are down about 9% since reports of the foodborne illness first spread less than two weeks ago.
JULY 22, 2026 AT 04:45 PM GMT
Utilities, Materials Lead S&P 500 Sectors Higher
The S&P 500 is slightly higher on the day. Its Utilities and Materials Sectors are aiding the cause.
The benchmark index is up 0.2% in early afternoon trading, paced by the Utilities and Materials Sectors, which are a respective 1.9% and 1.5% higher.
Seven of the 11 sectors tracked by the index are in the green. Consumer Discretionary shares are down 0.6% to pace sector decliners.
JULY 22, 2026 AT 03:24 PM GMT
GE Vernova Shares Sell Off Following Weak Wind Orders
GE Vernova (GEV) posted stronger-than-expected second-quarter revenue and lifted its full-year outlook. Its shares are sinking, though, because of soft results in its Wind segment.
Shares of GE Vernova dropped about 6% Wednesday morning the former General Electric unit posted Q2 earnings of $2.47 per share, well below the $3.15 consensus of analysts surveyed by Visible Alpha.
GE Vernova’s Wind orders came in at $1.2 billion, below expectations of $1.36 billion. It marked a 40% organic decline year-over-year, “due to lower equipment at Onshore Wind.”
The Cambridge, Mass.-based firm posted revenue of $11.1 billion, above estimates of $10.8 billion, and raised its 2026 revenue forecast to a range of $45.5 billion to $46.5 billion, up from $44.5 billion to $45.5 billion. It also lifted its free cash flow outlook to $11.5 billion to $12.5 billion from the prior $6.5 billion to $7.5 billion.
Despite today’s decline, shares of GE Vernova are up 55% since the start of the year.
JULY 22, 2026 AT 01:36 PM GMT
Morgan Stanley Analysts Say Sentiment Has Gotten ‘Too Negative’ on Software Stocks. These Are Their Picks
A number of software stocks have had a tough time lately. That could leave some high-profile names primed for a rebound, according to Morgan Stanley.
The S&P 500 software industry index has dropped more than 25% from its highs last October as many investors trimmed their holdings in the sector amid worries about AI-driven disruption. America’s largest software exchange-traded fund, the iShares Expanded Tech-Software Sector ETF (IGV), is down 13% this year so far, compared to the S&P 500’s close to 10% gain over the same period.
“We think the market has become too negative,” Morgan Stanley analysts wrote in a note to clients Tuesday, saying that they believe “there are more opportunities than investors currently believe.” Here are some of their top ideas for ways investors could play a rebound in the sector.
Microsoft (MSFT), which has seen its stock lose nearly a fifth of its value year-to-date, making it the weakest-performing Magnificent 7 stock of 2026 so far, was one of Morgan Stanley’s picks. The software giant was the “highest quality” choice Morgan Stanley screened, based on its competitive moat and near-term growth potential, according to the analysts. Their price target of $600 for the stock would suggest 50% upside from Tuesday’s close and is a bit above the analyst consensus compiled by Visible Alpha around $550.
Read the full article here.
JULY 22, 2026 AT 12:31 PM GMT
Monday.com to Lay Off 20% of Workforce
Before the bell, Monday.com said in a regulatory filing that it initiated a restructuring plan “intended to support a leaner, more focused operating model.” It will include mass layoffs.
The Israel-based company, known for its software that helps teams keep track of work, said it intends to lay off about 20% of its workforce as it “continues to invest in its AI-driven growth strategy.”
Monday.com estimates it will incur about $45 million to $55 million in net charges, which are expected to be recognized in the second half of the year.
The firm now sees full-year adjusted operating margin of about 15%, up from its previous guidance of roughly 13%. It still expects year-over-year revenue growth and adjusted free cash flow margin of about 19% to 20%.
Monday.com shares have lost half their value since the start of the year. They rose 2% premarket following the news.
JULY 22, 2026 AT 12:04 PM GMT
Supermicro Shares Soar on Updated Gross Margins Forecast
Super Micro Computer (SMCI) significantly lifted its gross margins estimate for its recently completed fiscal fourth quarter. Investors loved what they heard.
Shares of Super Micro Computer, or Supermicro, soared 15% before the bell Wednesday, a day after the maker of AI servers estimated gross margins for the quarter ended on June 30 would be roughly double their previous projection.
The San Jose, Calif.-based firm now expects Q4 gross margins to be in the range of 15% to 17%, up from its prior guidance of 8.2% to 8.4%, “primarily due to a favorable customer and product mix.”
Although Supermicro now sees Q4 revenue “to be near the low end of our guidance of $11.0 billion to $12.5 billion,” it added that its “backlog rose to record levels at the end of fiscal 2026 with total new orders in excess of $60 billion received during the fourth quarter.”
The news provided a lift to shares of rival server makers Hewlett Packard Enterprise (HPE) and Dell Technologies (DELL), which rose more than 2% apiece.
Shares of Supermicro, which is slated to release its full earnings report on Aug. 11, entered Wednesday down about 13% this year.
UPDATE—This item has been updated to correct the quarter of the updated forecasts and add the date of its full earnings report.
JULY 22, 2026 AT 10:57 AM GMT
Stock Futures Point to Lower Open on Big Tech Earnings Day as Oil Prices Jump
Futures contracts tied to the Dow Jones Industrial Average were fractionally lower.
S&P 500 futures pointed 0.2% lower.
Nasdaq 100 futures were down 0.6%.
Read the original article on Investopedia
