Finance

Major equity futures pointed lower after high-profile corporate earnings tests failed to reassure investors focused on capital allocation efficiency. Despite reporting robust top-line revenue expansions, Alphabet faced downward pressure after significantly increasing its 2026 capital expenditure target to $205 billion, while Tesla dropped considerably due to a stark second-quarter earnings miss driven by operating expenses outfacing revenue growth.

Shares of Lockheed Martin and RTX climbed sharply higher after both defense companies upwardly revised their full-year guidance on the back of historic procurement demand. Lockheed Martin recorded an unprecedented order backlog of $230 billion, which includes a preliminary multi-billion-dollar Pentagon contract for missile interceptors, while RTX reported a considerable boost in air-defense and military hardware bookings.

The 10-year U.S. Treasury yield surged to an 18-month intraday peak of 4.711% as fixed-income assets faced a persistent selloff. The ongoing military conflict in the Middle East has stoked investor anxiety that elevated energy overheads will force the Federal Reserve to maintain a restrictive policy stance or potentially enact fresh interest rate hikes.