U.S. Stocks Tumble | Brent Crude Breaks $100 | Gold Slips Below $4,050 | Tesla Plunges 14%

Market Overview

Thursday's global markets were driven by three major themes.

First, U.S. equities closed sharply lower across the board. The Nasdaq fell 2.15% to 25,137.69, the S&P 500 declined 1.21% to 7,408.30, and the Dow Jones Industrial Average lost 0.97% to 51,711.65. The combined market capitalization of the “Magnificent Seven” shrank by approximately $800 billion, with Tesla plunging nearly 14% and Alphabet (Google) dropping more than 7%.

Second, geopolitical tensions triggered a sharp repricing in the energy market. Following Iranian strikes targeting border crossings between Iraq and Kuwait, Brent crude for September delivery surged 7.04% to $100.69 per barrel, reclaiming the psychologically significant $100 level. WTI crude climbed 6.17% to $92.19 per barrel.

Third, the U.S. dollar and Treasury yields moved higher simultaneously, weighing on precious metals. Spot gold fell 1.96% to $4,049.48 per ounce, while silver declined 3.60%. Meanwhile, the Japanese yen weakened beyond ¥163 per U.S. dollar, reaching its weakest level since 1986.

On the macroeconomic front, initial U.S. jobless claims fell to 187,000, the lowest reading since 1969, underscoring the continued resilience of the labor market. The European Central Bank left interest rates unchanged as expected. In contrast, China's A-share market ended the session higher, with all three major indexes posting gains.

Market OutlookGlobal July PMI Data Takes Center Stage

July PMI readings from the United States, Eurozone, United Kingdom, and Japan will all be released on the same day, providing investors with an important snapshot of global economic momentum following the recent surge in oil prices and higher tariffs.

Markets will closely monitor the divergence between the manufacturing and services sectors, along with trends in new orders and input prices, for early signals on global growth prospects in the second half of the year.

Inflation Outlook After Oil Breaks Above $100

With Brent crude back above $100 per barrel, energy costs have once again become a key driver of the inflation narrative.

ECB President Christine Lagarde has warned that elevated energy prices could keep inflationary pressures lingering into the first half of 2027. At the same time, the latest U.S. jobless claims data, the lowest since 1969, suggest the labor market remains exceptionally tight.

Should oil prices remain elevated for an extended period, expectations for central bank rate cuts could be pushed further into the future.

Key Events to Watch

• July PMI data from the United States, Eurozone, United Kingdom, and Japan

• U.S. June New Home Sales

• Japan's June CPI, with the yen trading beyond ¥163 per U.S. dollar

• South Korea's president meets with executives from the country's two leading memory chip manufacturers in the U.S. to discuss AI cooperation with NVIDIA and OpenAI

• Ongoing U.S.-Iran tensions, with close attention on shipping through the Strait of Hormuz and crude oil prices

• Intel reported 25% year-over-year revenue growth in the second quarter, with shares jumping more than 10% in after-hours trading, shifting investor focus toward the duration of the global semiconductor supply shortage