On July 20, 2026, major U.S. stock indexes recorded significant declines: the S&P 500 fell by 1.34%, the Dow Jones Industrial Average decreased by 1.07%, and the Nasdaq 100 dropped by 2.06%. This downturn followed a decline in Alphabet’s stock of over 7% after it raised its 2026 capital spending forecast to $205 billion, intensifying concerns about its return on AI investments. Tesla’s share price also plummeted more than 13% amid similar concerns raised in its recent earnings report.
In the commodities sector, WTI crude oil prices surged more than 6% due to a missile attack by Iranian-backed Houthis on two Saudi oil tankers in the Red Sea, pushing September Brent crude above $100 per barrel. The attack raises concerns about disruptions to oil shipping routes, particularly from Saudi Arabia’s Yanbu port. As tensions escalate in the region, President Trump indicated the U.S. would respond to any blockade.
On the economic front, U.S. initial unemployment claims fell by 22,000 to 187,000 in the week ending July 18, indicating a stronger labor market than anticipated. Meanwhile, the Chicago Fed’s National Activity Index showed a slight decline to -0.02, below expectations, and the Kansas City Fed’s manufacturing activity index dropped by 2 points to 9, weaker than forecasts.
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