The S&P 500 is heading for a losing week after its worst session since June 23, hit by a spike in oil prices and weak earnings from Tesla and Alphabet. Futures steadied early Friday, but the Dow, S&P 500 and Nasdaq are all set to end the week lower.
The S&P 500 is on pace for a losing week after dropping 1.2% on Thursday in its worst session since June 23. A sharp jump in oil prices and disappointing results from two megacap companies pressured the broader market, though S&P 500 futures were flat early Friday as traders looked to steady the ship.
Selling spreads across Wall Street
The Dow dropped more than 500 points, or around 1%, marking its fifth negative day in six. The tech-heavy Nasdaq fared worse, falling 2.2% for its own worst day since June 23. All three benchmarks are now set to finish the week in the red.
Oil above $100 revives inflation fears
Brent crude topped $100 per barrel for the first time since late May, soaring about 7% on Thursday after two Saudi oil tankers were reportedly struck in the Red Sea. West Texas Intermediate advanced roughly 6% on the day. The surge stoked inflation worries and pushed Treasury yields higher, with the 10-year yield trading at 4.705%.
LPL Financial strategist Adam Turnquist said the market had entered the escalation poorly positioned for an upside surprise, warning that "even a modest deterioration in supply expectations can produce an outsized price response."
Tesla and Alphabet weigh on tech
Quarterly results from two giants deepened the slide. Tesla tumbled nearly 15%, its worst day since March 10, 2025, after an earnings miss for the second quarter. Alphabet lost 7% — its biggest daily decline since May 7, 2025 — after hiking its full-year guidance for capital expenditures.
Asian markets follow lower
The weakness carried into Asia on Friday. Japan's Nikkei 225 fell 2.79% in early trading. South Korea's Kospi dropped over 5%. Pressure mounted further as Trump imposed new tariffs of 10% to 12.5% on dozens of countries.
For the week, the Dow and S&P 500 have shed 0.8% and 0.7%. The Nasdaq has lost 1.5%.
Sources: CNBC, The Guardian
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