Finance

Tesla shares plummeted approximately 15% following its second-quarter earnings report, leading the downward trend in the consumer cyclical and technology sectors. The electric vehicle maker missed consensus analysts' profit expectations and reported negative free cash flow for the first time in two years. Market anxiety was further fueled by executive commentary designating the current year as a period of elevated capital spending for robotics and data centers.

Alphabet shares slid roughly 7% after management projected full-year capital expenditures to potentially reach $205 billion. Although the Google parent reported robust revenue increases across its cloud and search divisions, the market focused on doubling quarterly capex that caused historical free cash flow to turn negative. Additionally, sentiment was weighed down by a new $1 billion fine levied against the company by the European Union.

Brent crude oil futures surged above $100 a barrel for the first time in two months following fresh geopolitical developments in the Middle East. Prices spiked after Houthi militants claimed responsibility for targeting Saudi Arabian oil tankers in the Red Sea, amplifying fears of critical transit corridor blockages. Broad energy market concerns were reinforced by threats of severe retaliatory infrastructure strikes from U.S. leadership.