International markets update:
Geopolitical tensions escalated significantly, particularly concerning the Red Sea and Strait of Hormuz, driving oil prices higher while major technology firms reported a mix of stronger and weaker second-quarter earnings.
- US President Donald Trump escalated threats against Iran, vowing to bomb infrastructure if shipping attacks continued, significantly heightening geopolitical tensions in the Middle East.
- Houthi rebels targeted shipping in the Red Sea’s crucial Bab al-Mandeb chokepoint, further disrupting oil supply routes already threatened by Strait of Hormuz tensions and causing Brent and WTI crude prices to surge over 3%.
- Alphabet reported better-than-expected revenue, fueled by its cloud business, though shares declined due to a massive increase in planned capital expenditure for AI in 2026.
- Tesla delivered weaker-than-expected earnings despite revenue exceeding estimates, as soft margins and soaring operating costs, driven by AI investments, weighed on profitability.
- IBM lowered its 2026 forecast and missed analyst earnings projections for the second quarter, following an earlier earnings warning.
- Advanced Micro Devices announced a strategic partnership with Anthropic, committing up to $5 billion in future investments into the artificial intelligence company, highlighting continued Big Tech focus on AI.
- Samsung launched new, more expensive foldable smartphones, driven by surging memory chip costs from high AI demand and supply shortages, as it aims to maintain market leadership ahead of Apple’s potential entry.
Stock Market News summarised for the Wall Street Investors Club community.