Stock Indexes Retreat as Crude Oil and Bond Yields Climb

U.S. stock indexes retreated as crude oil rose and bond yields climbed, pressuring equities across the session. The S&P 500 fell 0.13%, the Nasdaq 100 dropped 0.48%, while the Dow Jones rose 0.15%. Markets also weighed weakness in software and cybersecurity stocks ahead of earnings later in the day from Alphabet, as investors look for evidence that its artificial intelligence investments are generating returns. Alphabet plans to more than double capital spending from 2025 to as much as $190 billion this year. Oil prices gained more than 2% to a six-week high after the U.S. and Iran downplayed prospects of peace talks, following disruptions to global supplies. The 10-year Treasury yield jumped to a two-month high of 4.65%. Tensions included an 11th straight day of U.S. attacks on Iran aimed at reducing threats to shipping in the Strait of Hormuz and Iranian strikes on bases in Bahrain, Kuwait, and Jordan. In economic data, U.S. MBA mortgage applications rose 1.9% for the week ended July 17, and the average 30-year fixed rate rose 4 basis points to 6.69%.