Alphabet and Tesla Slide After the Bell as Rising Oil Prices Cap a Cautious Session

A Quiet Session Gives Way to a Loud Close

Alphabet and Tesla Fall After the Bell Despite Strong Revenue Growth

• Alphabet fell roughly ▼ 4% in after-hours trading despite posting 24% revenue growth and 81% cloud-revenue expansion, as free cash flow turned negative on $45 billion in capital expenditures.
• Tesla dropped roughly ▼ 5% post-close after adjusted earnings per share disappointed, even as revenue grew 26% — the company continues to navigate transition challenges across multiple business lines.
• Nasdaq futures were trading down about 1% following the two reports, pointing to a cautious open Thursday as investors digest the results.
• The after-hours swings capped a session where the major indices had already closed mixed, weighed down by a third straight day of rising oil prices even before the earnings news hit.

Oil's Climb Weighs on Growth Stocks as Reddit Sinks on AI Data Dispute

• Brent crude climbed roughly ▲ 3% to its highest level in nearly six weeks, adding a fresh headwind for growth-stock valuations already bracing for Big Tech earnings.
• Reddit sank ▼ 8% after reports it may not renew a roughly $60 million AI-training data licensing deal with Google, raising concerns about both the platform's revenue and Alphabet's data access.
• Utilities were the session's standout sector as investors rotated toward defensive names, while communication services and healthcare retreated.
• AT&T climbed roughly ▲ 4% after beating earnings estimates on strong wireless subscriber growth, and Philip Morris International also posted stronger-than-expected quarterly profits.

Super Micro's Record Backlog Lifts the AI-Server Trade

• Super Micro Computer (SMCI) surged ▲ 26% after preliminary results showed a record $60 billion order backlog and a surprise gross-margin beat, resetting the AI-server maker's outlook.
• Dell Technologies (DELL) rallied ▲ 6% on the read-through from Super Micro's results, as investors bet the AI-server demand boom extends across the sector.
• AT&T (T) rose roughly ▲ 4% on strong wireless subscriber growth and better-than-expected earnings.
• Rocket Lab (RKLB) opened higher on news of a $266 million government contract, though shares finished the session roughly flat.

A Mostly Flat Session as Oil and Gold Both Climbed

• The Dow Jones Industrial Average was essentially flat, down ▼ 0.01% to 52,218.58, while the S&P 500 slipped ▼ 0.14% to 7,498.96.
• The Nasdaq Composite led index declines, down ▼ 0.57% to 25,690.90, and the Russell 2000 fell ▼ 0.92% to 2,959.94.
• Gold rose ▲ 1.49% to $4,137.10 an ounce as investors sought safe havens even as the 10-year Treasury yield held near 4.63%.
• Wednesday's modest pullback still leaves the S&P 500, Nasdaq, and Dow all higher for the week, though the Russell 2000 has slipped slightly into negative territory.

What to Watch Thursday and Beyond

• Intel reports earnings Thursday, July 23, a key test of whether this week's semiconductor rebound has real staying power across the broader chip sector.
• Markets will keep digesting Alphabet's and Tesla's after-hours reactions, with Nasdaq futures already pointing about 1% lower heading into Thursday's open.
• Alphabet's rising AI capital spending — already at $45 billion and pressuring free cash flow — is worth watching as a signal for how investors value AI investment across the sector.
• The Reddit-Google AI licensing dispute is a bellwether worth monitoring for how data-access agreements get valued as AI companies compete for training data.
• Oil's climb toward a six-week high remains a wildcard for growth-stock valuations heading into the back half of the week.