Wall Street Under Pressure: AI Spending Concerns and Middle East Tensions Shake Markets

U.S. stock markets faced turbulence as concerns over AI spending by major tech firms and escalating Middle East conflicts led to multi-week lows. Alphabet and Tesla's earnings reports disappointed, while geopolitical factors pushed oil prices to $100 per barrel, sparking inflation fears and affecting interest rate expectations.

U.S. stock indexes hit multi-week lows on Thursday amid mounting concerns over excessive AI spending by tech giants, following initial earnings from Big Tech players.

Alphabet and Tesla struggled to convince investors with their second-quarter results, sparking significant declines in their stock prices and dragging down the S&P 500's communication services sector.

Meanwhile, geopolitical tensions in the Middle East drove oil prices to $100 a barrel, reviving inflation fears and influencing interest rate expectations as the Federal Reserve's next meeting approaches.