Finance

Brent crude oil futures dropped nearly 4% to settle around $96.78 a barrel, retreating after briefly crossing the $100 threshold earlier in the week. The price reversal followed international reports indicating that Pakistan, acting under diplomatic encouragement from China, is attempting to broker new peace negotiations between the United States and Iran. Although significant obstacles to formal talks remain, the potential for diplomacy triggered quick profit-taking in the energy markets.

Disappointing cash flow metrics and escalating spending estimates among prominent tech giants triggered notable equity corrections. Shares of Tesla plunged roughly 14.5% after failing to meet quarterly earnings goals and logging negative cash flow, while Alphabet also dragged on indices due to a raised annual capital expenditures outlook for artificial intelligence infrastructure. This wave of spending anxieties extended heavy losses to semiconductor manufacturers, sending the broader chip sector downward.

Economic indicators revealed that private sector activity in the United States accelerated to an eight-month peak in July, largely bolstered by an upbeat expansion in the services sector. Economists noted that consumer spending in hospitality and related industries received a notable temporary lift from the FIFA World Cup and seasonal holiday events. Conversely, manufacturing data indicated a softer growth trajectory, experiencing its slowest pace of expansion since March.