Daily News 24th July 26
Daily News
Dow Sheds 500 Points and Nasdaq Slides 2% as Brent Crude Tops $100 on Mideast Escalation; Alphabet and Tesla Lose Hundreds of Billions on Earnings; Gold Slips Toward $4,030 as Trump Unveils Sweeping New Tariffs
24 July 2026
Today in Brief
Asia-Pacific markets slid broadly Friday, with Japan's Nikkei 225 down 2.79% and the Topix off 1%, South Korea's Kospi tumbling more than 5% and the Kosdaq down 4.95%, while Hong Kong's Hang Seng fell 1.33% and the CSI 300 slipped 1.4%. U.S. equities sold off Thursday as Brent crude soared roughly 7% to top $100 a barrel for the first time since May — the Dow shed 506.93 points, or 0.97%, to 51,711.65, the S&P 500 dropped 1.21% to 7,408.30, and the Nasdaq fell 2.15% to 25,137.69, dragged down by a 7% slide in Alphabet and a 14% plunge in Tesla following their earnings. Gold fell toward $4,030 an ounce on surging oil and hawkish Fed expectations, while crude traded above $92 a barrel and was on track for a weekly gain topping 12% amid a 13th straight day of U.S. strikes on Iran.
In other news: the U.S. Trade Representative imposed fresh Section 301 tariffs of 10%–12.5% on 60 trading partners over forced-labor enforcement, drawing rebukes but little retaliation; Japan's core inflation ticked up to 1.6% in June as higher oil prices fed through; President Trump warned Iran will be held responsible for further Houthi attacks after two Saudi tankers were struck in the Red Sea; the ECB held rates steady at 2.25% while flagging volatile energy-price risk; Intel posted its fastest quarterly revenue growth in almost 15 years and rose in extended trading; the Pentagon awarded Oracle a nearly $7 billion software consolidation deal; and Lockheed Martin and RTX lifted their 2026 forecasts as the Pentagon looks to restock depleted weapons inventories.
Asian markets slide broadly as Kospi tumbles over 5% and Brent crude tops $100 a barrel
In Asia, Japan's Nikkei 225 fell 2.79% while the Topix slipped 1%. The Kospi dropped over 5%, and the small-cap Kosdaq declined 4.95%. Australia's benchmark S&P/ASX 200 was 0.95% lower. Hong Kong's Hang Seng Index was down 1.33% and mainland China's CSI 300 declined 1.4%. Brent crude futures topped $100 per barrel for the first time since late May, soaring about 7% on Thursday.
Dow drops 500 points as Brent crude surges above $100; Alphabet and Tesla tank
U.S. equities fell on Thursday, as oil prices surged amid escalating conflict in the Middle East, while investors weighed quarterly results from two of the largest companies in the world, with Alphabet's fueling concerns about increased artificial intelligence spending. The Dow Jones Industrial Average lost 506.93 points, or 0.97%, to end at 51,711.65. The S&P 500 dropped 1.21% to 7,408.30, while the Nasdaq Composite declined 2.15% to close at 25,137.69. The tech-heavy index was bogged down by a 7% drop in Alphabet and a 14% loss in Tesla following their earnings reports.
Gold prices fall toward $4,030 an ounce as surging oil bolsters case for tighter Fed policy
Gold prices fell toward $4,030 per ounce on Friday, extending a nearly 2% decline in the previous session, as surging oil prices fuelled by the escalating Middle East conflict strengthened the case for tighter US monetary policy. President Donald Trump warned of expanded military action against Iran and vowed to hold Tehran accountable for any future Houthi attacks on commercial vessels in the Red Sea, helping lift Brent crude above $100 a barrel for the first time since May. Higher oil prices stoked inflation fears, boosting expectations of tighter Fed policy and pressuring non-yielding assets. Markets currently assign a 34% probability to a Fed rate hike next week, while the odds of a September increase have climbed above 81%. Meanwhile, fresh US tariffs of 10%–12.5% on imports from major trading partners added to the uncertain market backdrop. Gold is still heading for a modest weekly gain.
Crude oil trades above $92 a barrel, on track for a weekly gain topping 12%
Crude oil traded above $92 per barrel on Friday and was on track to gain more than 12% for the week, as escalating Middle East tensions heightened fears of deeper global supply disruptions. The US launched a 13th straight day of strikes on Iran, with both sides ruling out near-term talks. President Trump also threatened "major military punishment" against Iran and the Houthis over any further attacks on Red Sea shipping and said he was considering a "massive attack" on Iran. His remarks followed attacks by Iran-backed Houthi militants on two Saudi oil tankers in the Red Sea, a key alternative export route for Saudi Arabia as fighting continued to disrupt traffic through the Strait of Hormuz. Asian buyers have begun discussing rerouting Saudi crude shipments through the Suez Canal and around Africa.
Trump's new global tariff draws rebukes from trade partners over forced-labor justification
U.S. trading partners from Canberra to Brasília have rejected the forced-labor rationale behind President Donald Trump's new global tariffs, while most signaled they would keep negotiating rather than retaliate. The Office of the U.S. Trade Representative on Thursday took action under Section 301 of the Trade Act of 1974, imposing tariffs on 60 economies for what Washington called their failure to impose and enforce bans on goods made with forced labor. The duties — 10% for partners that have adopted or committed to import prohibitions, 12.5% for those that haven't — cover the top 60 US trade partners and 99.4% of American imports.
Japan's core inflation creeps up from four-year low as higher oil prices bite
Japan's core inflation came in at 1.6% in June, government data released Friday showed, as the impact of higher oil prices spills over into the wider economy. This is the first rise in core inflation since March, and was in line with the 1.6% growth expected by economists polled by Reuters. Core inflation in Japan strips out prices of fresh food. Headline inflation increased to 1.7% from May's 1.5%, while the so-called "core-core" inflation rate, which strips out prices of fresh food and energy, dipped to 1.7%, the lowest since August 2022. Cushioned by government subsidies, energy prices dipped just 0.1% year-on-year in June, compared with a 2.5% fall in May. Charges for fuel, light and water remained flat, ending 6 straight months of declines.
Trump says U.S. will hold Iran responsible for Houthi attacks after oil tankers targeted in Red Sea
President Donald Trump on Thursday said the U.S. will hold Iran responsible for future Houthi attacks after the Tehran-backed militant group claimed to have struck two Saudi oil tankers in the Red Sea. The warning comes as Yemen's Houthis threaten to open up a new front in the Middle East conflict as the U.S. completed its 12th consecutive night of strikes on Iran. In a Truth Social post, Trump said the U.S. attacked the Houthis "very powerfully" a year ago for disrupting global trade by shooting ships. "Since that time, and during our conflict with Iran, they have acted very responsibly. Unfortunately, now they are starting up again, shooting at two Saudi Arabian ships last night," Trump wrote.
ECB leaves interest rates unchanged amid Iran-linked inflation worries
The European Central Bank left interest rates unchanged as widely anticipated on Thursday, warning of uncertainty around an energy price shock driven by the ongoing war in the Middle East, leaving open the possibility of a borrowing cost hike later this year. Opting to keep its key deposit facility steady at 2.25%, the ECB said the outlook for energy prices is "highly volatile," currently stands "close to the baseline" of staff projections issued in June and well above pre-conflict levels. "Uncertainty remains high and the full inflationary impact of the energy shock has yet to play out," the ECB wrote in a statement, adding that its rate-setting Governing Council is "therefore closely monitoring the intensity and duration of the shock, as well as its indirect and second-round effects." Last month, the ECB raised the deposit rate by 25 basis points to 2.25%, becoming the first major central bank to increase rates to reassure markets that it is prepared to act to corral inflation pressures linked to the Iran war.
Tesla, Alphabet lose hundreds of billions in value in post-earnings stock plunge
Shares of Alphabet and Tesla fell on Thursday after both companies signaled increased AI spending, unnerving investors worried about the mounting costs of the artificial intelligence boom. Tesla stock closed 14.5% lower while Alphabet lost 7.1%. Elon Musk's EV maker posted its worst day since March 2025. Tesla lost about $200 billion in market cap on Thursday, while the Google parent saw about $300 billion wiped out. Both companies reported negative free cash flow for the second quarter on Wednesday. Alphabet raised its capital expenditure forecast for this year to $195 billion to $205 billion and warned of higher figures in 2027. The Google parent company's previous projection was for capex between $180 billion and $190 billion.
Intel's stock jumps as chipmaker rides AI boom to fastest revenue growth in almost 15 years
Intel reported better-than-expected second-quarter results on Thursday, notching its fastest revenue growth rate for any quarter since 2011 and issuing guidance that topped expectations. The stock rose about 4% in extended trading. Intel shares are up over 170% so far in 2026 as of Thursday's close after soaring 84% last year, when the U.S. government took a 10% stake in the company as part of an effort to support U.S. chip manufacturing. However, the stock has been in a slump more recently, dropping 28% in July. Despite the recent downturn, the company is getting a boost from the artificial intelligence infrastructure boom, which is helping sales of its server processors. Intel's 25% revenue growth was the fastest for any period in almost 15 years.
Pentagon awards Oracle nearly $7 billion deal in latest software consolidation push
The Pentagon announced on Thursday a nearly $7 billion, up-to-10-year agreement with Oracle to consolidate the department's on-premises software licenses into a single contract, the latest move by the Pentagon's technology chief to cut costs by eliminating fragmented purchasing. The Enterprise Software Agreement, negotiated by the Department of the Navy, is between the Pentagon and Oracle for its on-premises compute usage. The agreement spans five years, with a further five-year option, and covers the entire Pentagon, along with the U.S. Coast Guard and the intelligence community. "By fundamentally improving how we procure on-premises Oracle capabilities, we are driving at least $441 million in taxpayer savings while rapidly and effectively serving our warfighters," Pentagon Chief Information Officer Kirsten Davies said. The Oracle agreement builds on a similar effort Davies' office struck with Microsoft in May.
Lockheed Martin, RTX lift 2026 forecasts as Pentagon looks to restock weapons
The world's two biggest defense contractors, Lockheed Martin and RTX, said on Thursday they expect strong profits going forward because a wave of global conflicts from Iran to Ukraine has depleted Pentagon stockpiles that will need replenishing. Investors cheered the news, pushing shares of Lockheed up 10.6% and boosting RTX 7.7%. President Donald Trump has been urging defense contractors to increase production as the U.S.-Israeli war on Iran and a prolonged Russia-Ukraine conflict drain the Pentagon's inventory. Trump has also proposed a record $1.5 trillion military budget for fiscal 2027. The U.S. House of Representatives this week passed its version of a massive defense policy bill that would authorize an unprecedented $1.15 trillion in spending for the military. Demand is expected to remain strong.
