The United States stock market, Wall Street, experienced a sharp correction at the close of trading on Thursday (7/23/2026). This significant decline was triggered by market concerns over the massive realization of artificial intelligence (AI) technology spending, which is deemed not yet proportional to its profitability, combined with a spike in global crude oil prices that sparked fresh inflation fears.
Based on trading data, the Nasdaq Composite index led the losses, plunging 2.15 percent or shrinking 553.21 points to the level of 25,137.69. This decline was followed by the S&P 500 index, which slid 1.21 percent to 7,408.30, and the Dow Jones Industrial Average, which corrected 0.97 percent to the position of 51,711.65. Transaction activity on the US exchange was recorded at 16.21 billion shares.
Negative sentiment in the technology sector was primarily driven by second-quarter financial reports from tech giants Alphabet and Tesla, which failed to meet market expectations. Shares of Alphabet, Google's parent company, slashed by up to 7 percent after announcing bloated capital expenditure plans for AI infrastructure amid a decline in net cash flow. This also dragged the communication services sector index down by 5.20 percent.
On the other hand, escalating geopolitical tensions in the Middle East further clouded global financial market conditions. Exchange of fire between the United States military and Iran, along with attacks by Yemeni fighters on Saudi Arabian oil tankers in the Red Sea, pushed Brent crude prices above US$ 100 per barrel for the first time since May.
Although the majority of sectors weakened, stocks in the defense industry actually posted significant gains amid global uncertainty. Lockheed Martin shares skyrocketed 10.5 percent and RTX rose 7.3 percent following an increase in sales targets for their military systems. The rise in energy commodity prices triggered inflation concerns ahead of the Federal Reserve's policy meeting next week, although the majority of market participants speculate that the Fed will still maintain its benchmark interest rate.
