Oil Surges Above $90 as Bitcoin Slips; Alphabet Lifts AI Spending
Key Points
- ["WTI crude oil soared nearly 5% to $91 per barrel, its highest level since early June, after Iran-backed Houthis claimed an attack on two Saudi oil tankers in the Red Sea.","Bitcoin declined 0.5% over 24 hours to $65,500 as rising oil prices and higher Treasury yields pressured risk assets; the 10-year yield climbed 4 basis points to 4.70%.","Alphabet's stock fell after hours despite beating revenue expectations at $119.8 billion (up 24%) because the company raised its 2026 capital spending forecast to $195-$205 billion from $180-$190 billion to meet AI demand."]
The capital spending increase underscores an emerging dynamic in technology markets: while chip companies have rallied on expectations of sustained AI infrastructure investment, some semiconductor customers now face pressure from investors concerned about free cash flow erosion. Asian chipmakers responded positively to Alphabet's disclosure, with the Kospi index up 3.6% and both Samsung and SK Hynix rising more than 2%, betting they will capture a portion of the increased spending. The S&P 500 majors remained flat.
Other cryptocurrency assets held relatively steady. Ether traded near $1,916, XRP at $1.13, and Solana at $77, though Hyperliquid fell 11% over the week. Bitcoin spot ETFs attracted nearly $1 billion in investor flows over seven straight trading days, with $500 million allocated this week alone—the strongest performance since early May, according to SoSoValue data.
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The convergence of geopolitical risk, rising Treasury yields, and corporate capital spending announcements has created competing pressures on markets. Oil's rally to $91 per barrel extends a July advance that has revived inflation concerns, potentially constraining the Fed's ability to cut rates despite slowing economic growth. The next critical test arrives at the Fed's July 28-29 policy meeting, when traders will assess whether the central bank views the inflation resurgence as transitory or persistent.
Market Outlook
Oil prices will likely remain elevated above $90 per barrel if geopolitical tensions in the Red Sea persist, keeping Treasury yields under upward pressure. This dynamic suggests Bitcoin and broader risk assets may face headwinds ahead of the July 28-29 Fed meeting. Alphabet's AI spending escalation signals sustained infrastructure demand, which could continue supporting semiconductor stocks even as higher rates weigh on growth valuations.
Sources: AP, Reuters, ESPN, Bloomberg, BBC and other international news outlets.
Disclaimer: This article is for informational purposes only. Content is based on publicly available news sources.
NewsOracle Editorial
The NewsOracle Markets Desk covers stock markets, cryptocurrency, economic policy and breaking financial news from Wall Street and global exchanges.
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