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(David Paul Morris/Bloomberg News)
key takeaways:
- Oil prices have increased further following the ongoing attacks between the United States and Iran.
- Rising oil prices were again driving inflation, just as price rises were slowing more than economists expected.
- Stocks of computer chip companies and other winners in the AI boom are down on July 22.
NEW YORK – Stocks of computer chip companies and other winners of the artificial intelligence boom are back down July 22 and putting pressure on Wall Street. Meanwhile, oil prices rose another 2% as the war with Iran continued.
Broadly speaking, stocks are also feeling the pressure of the continuous rise in oil prices, which increases costs for most businesses and reduces their profits.
The price of a barrel of Brent crude, the international standard, rose 2.6% to $93.40. That’s down from $72 earlier this month, roughly the level before the war with Iran.
Earlier in the morning, it rose above $95 a barrel to touch its highest price in nearly six weeks.
Rising oil prices are posing a threat of inflation rising again, just as price rises were slowing more than economists expected. This could result in pressure on the Federal Reserve and other central banks to raise interest rates, which would slow the economy and lower the prices of stocks and other investments.
Oil prices have soared as fighting across the Middle East prevents oil tankers from using the Strait of Hormuz to exit the Persian Gulf and deliver goods to customers. Typically, one fifth of all oil and natural gas traded in peacetime passes through the narrow strait.
The live national average price of gasoline is now $4.004/gal (via GasBuddy), but will rise actively throughout the day, to $4.05/gal or even $4.10-$4.15/gal for now. Diesel is now $5.13 per gallon which will reach $5.25 per gallon in the coming days. – Patrick de Haan (@GasBuddyGuy) 21 July 2026
Auto club AAA said on July 22 that the average price of a gallon of regular gas in the US rose again overnight to $4.06. That’s still down from a high of about $4.56 a gallon in May, but below $3 before the United States and Israel attacked Iran in late February.
The yield on 10-year Treasuries stood at 4.63%, where it stood at the end of July 21. That’s up sharply from 3.97% before the war with Iran broke out, and has already helped push long-term US mortgage rates to their highest level in almost a year.
The S&P 500 fell 0.2%, although most of its stocks rose. As of 9:35 a.m. Eastern time, the Dow Jones Industrial Average was up 89 points, or 0.2%, and the Nasdaq Composite was 0.5% lower.
AI stocks have been at the center of Wall Street’s ups and downs for several weeks. After rising on the excitement of billions of dollars going into AI chips and data centers, these stocks are moving up and down due to concerns that their prices have gone too high. Investors are also wondering whether spending on AI might be reduced if it does not deliver as many benefits as promised.
Micron Technology fell 1.6%. It had jumped 14.4% in the first two days of this week and almost recovered last week’s decline of 13.3%. It’s up nearly 235% so far this year.
A big test is coming soon after the US stock market closes for the day. That’s when Alphabet is about to report its latest earnings results. Google’s parent company is one of the world’s biggest spenders on AI, and this could provide clues about whether all the investment is translating into better profits and productivity.
Most large US companies are reporting strong profits for the spring so far. Expectations are very high for them, and with their prices already heading towards records on anticipation for them, they will need to at least match them.
AT&T climbed 4.4% after it posted stronger-than-expected profit in the latest quarter, even though its revenue slipped. CEO John Stankey also said the telecom is accelerating plans to send about $10 billion to its shareholders through buybacks of its stock this year.
Philip Morris International rose 4.6% after the seller of cigarettes and smokeless products reported stronger-than-expected profit and revenue.
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Super Micro Computer rose 15.6% after the maker of AI servers said it expected to report stronger profit margins for the latest quarter than previously forecast. However, it also said revenues would likely come in at the low end of the projected range of $11 billion to $12.5 billion.
GE Vernova, meanwhile, sank 6% after its profit for the latest quarter came in weaker than analysts’ expectations.
Overseas, indices rose in Europe after a mixed session in Asia.
London’s FTSE 100 rose 1.6%, while Hong Kong’s Hang Seng fell 1% due to two major world moves.
AP Business writers Yuri Kageyama and Matt Ott contributed to this report.
