U.S. Stocks Plunge as AI Concerns and Iran Tensions Converge; S&P 500 Down 1.2% on July 23

According to Business Insider, U.S. stocks experienced a sharp selloff last week as two major market drivers simultaneously turned negative. On July 23, the S&P 500 fell 1.2%, the Nasdaq 100 dropped nearly 2%, and the Magnificent 7 tech stocks plummeted 4%. The decline was driven by renewed concerns over AI capital expenditure sustainability and escalating Iran-U.S. tensions that pushed crude oil above $100 per barrel.

Alphabet stock fell 7% after raising its annual capital expenditure guidance, while Tesla tumbled 15% due to increased investment spending and disappointing profits. According to Axios, Trump ordered a halt to U.S. military strikes against Iran on July 24, ending nearly two weeks of daily aerial operations. Market focus has shifted from earnings quality to whether tech giants will sustain elevated AI infrastructure spending.