Tech Stocks Are Getting Routed Again

It's shaping up to be a rough day on Wall Street, particularly in the tech sector. Alphabet sank about 7% Thursday morning after Google's parent projected that its capital spending could reach up to $205 billion in 2026 to feed AI demand, reports the Wall Street Journal. Tesla, meanwhile, slid roughly 13% as its second-quarter free cash flow turned negative and expenses outpaced revenue. The hits helped drag the tech-focused Nasdaq down about 2.8%, more than 700 points, and knocked more than 600 points off the Dow, per CNBC.

Adding to the pressure: a jump in oil and bond yields. Brent crude surged about 6% above $100 a barrel and US benchmark crude climbed past $91 after Yemen's Houthi group said it attacked two Saudi tankers and President Trump threatened strikes on Iranian infrastructure. The developments stoked fears of a wider Middle East conflict and renewed inflation. Treasury yields rose, with the 10-year touching its highest level since January 2025.