Finance

Investor enthusiasm for artificial intelligence faced a reality check after quarterly reports from Alphabet and Tesla highlighted mounting capital expenditures and cash burn. Alphabet shares sank despite strong growth due to elevated spending forecasts, while Tesla experienced its steepest single-day drop since June 2025 after reporting negative free cash flow. In contrast, Intel offered some sector relief by reporting quarterly results that topped expectations, prompting a rebound in its premarket shares.

Global energy markets experienced heightened volatility after Iran-backed Houthi forces targeted Saudi Arabian oil tankers in the Red Sea, temporarily pushing Brent crude prices above $100 a barrel. The spike in energy costs has intensified fears of renewed inflation, driving U.S. 10-year Treasury yields to their highest marks since early 2025. Although oil prices pulled back slightly on Friday, upcoming central bank meetings are expected to closely scrutinize these geopolitical developments.

Following the expiration of a temporary 10% global levy, the Trump administration announced new statute-based duties ranging between 10% and 12.5%. These new targeted measures apply to goods from 60 economies, including the European Union, the United Kingdom, and Mexico, over concerns regarding forced labor bans. Investors are keeping a close watch on legal challenges and corporate guidance adjustments as a result of the changing trade policy.