Stocks sink on Big Tech cash burn; oil hits $100 for first time since May

Stocks fell across U.S. and Europe as oil surged and investors reacted to cash burn reports from major tech companies. On July 23, Brent crude jumped 6% to $100.50 a barrel for the first time since May following attacks on tankers in the Red Sea, with prices also pressured by renewed tensions around Iran and the Strait of Hormuz. The article links the move to strikes by Iran-aligned Houthis that hit two Saudi oil tankers during a naval blockade, along with U.S. military strikes on Iran for a 12th straight night and threats of further action by the White House. Equities were weighed after Alphabet and Tesla—two of the “Magnificent Seven”—signaled higher AI spending after burning cash; Tesla shares dropped 12%, while Alphabet fell about 7%. In Europe, the STOXX 600 fell 1.1% after an earnings miss from STMicroelectronics, whose shares slid 18%. Germany’s 10-year Bund yield rose above 3.2% to the highest level since 2011, as the ECB held rates at 2.25%.