# Nasdaq plunges 2% as tech earnings spark AI spending worries Weak Big Tech results and rising AI investment concerns rattled markets. - **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48) - **Published:** 2026-07-23 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/b1afb0d3-26f1-4941-bf6b-a7a8ccafafcc ## Tech giants' earnings disappoint investors Alphabet and Tesla's Q2 results failed to impress, with Alphabet's increased spending plans and Tesla reporting negative free cash flow for the first time in two years. These developments shook confidence in the tech sector, leading to Nasdaq's sharp decline. ## Oil prices fuel inflation concerns Brent crude surged above $100 per barrel due to Middle East tensions, raising inflation fears ahead of the Fed's policy meeting. The oil price spike also pushed bond yields higher, adding pressure to equity markets. ## Defense stocks show strength Companies like Lockheed Martin saw share price increases after raising sales and profit forecasts. However, this positive momentum wasn't enough to offset the tech sector's widespread declines. ## AI spending becomes market worry Heavy capital expenditures on artificial intelligence by major tech firms led investors to question valuations. Concerns that these investments might hurt short-term profitability contributed to significant stock price drops across the sector. ## Market volatility spikes The CBOE Volatility Index reached its highest level in nearly a month. Tech stock declines and inflation concerns created uncertainty, with investors adopting cautious positions ahead of the Fed's rate decision. ## Critical week ahead for markets The Fed's rate decision and more Big Tech earnings next week will likely determine market direction. Rising oil prices and inflation pressure may reshape central bank policies, suggesting continued volatility for investors in the near term. ## Sources covering this story - https://economictimes.indiatimes.com/markets/us-stocks/news/us-stocks-today-us-stocks-fall-as-tech-earnings-spark-ai-spending-worries-and-oil-hits-100/articleshow/132591456.cms — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._