Stocks Slip Ahead of Alphabet, Tesla Earnings as Oil Jumps on Iran Escalation

(WS News) – Wall Street pulled back on Wednesday as investors braced for the start of megacap earnings season, with Alphabet and Tesla both due to report after the closing bell and oil prices climbing on renewed worries about an escalation in the Iran war.

Brent crude briefly spiked above $95 a barrel, up nearly 4 percent, as US strikes on Iran continued for an 11th consecutive night. Losses in large technology stocks weighed on the S&P 500 even as most of the index’s individual components posted gains, with traders looking to Alphabet’s results in particular for evidence that massive AI infrastructure spending is starting to generate a clear return. International Business Machines is also scheduled to report Wednesday.

Elsewhere in corporate news, AT&T reported second-quarter earnings that topped analysts’ forecasts, with wireless postpaid phone subscriber growth outperforming projections even as overall revenue fell short for a second straight quarter. Shares of SpaceX climbed 3 percent, snapping a seven-session slide, as investors looked ahead to the company’s Aug. 4 earnings release and a share lock-up expiry scheduled for Aug. 6.

Analysts said the market’s muted reaction to fresh Middle East escalation reflects a broader focus on corporate profits, with Wall Street’s second-quarter earnings growth tracking above 20 percent for a second straight quarter, according to FactSet. Investors are also monitoring signals from Washington, where the US Trade Representative indicated additional tariffs may be announced soon.