〈After Hours〉Oil Prices Surge, S&P and Nasdaq Close Lower as Investors Await Tech Giants' Earnings

U.S. stocks closed lower on Wednesday (22nd), with tech stocks showing mixed performance. Rising oil prices added pressure, while investors awaited key corporate earnings to assess whether the rally driven by the artificial intelligence (AI) boom remains sustainable.

After major indices rebounded from their March lows over the past few months, market momentum has recently wavered, mainly due to inconsistent performance among major semiconductor stocks and weakness in software shares.

The Philadelphia Semiconductor Index closed higher, recovering from early losses. It marked the third consecutive day of gains after a three-day losing streak, having briefly entered bear market territory last week.

Alphabet (GOOGL-US) and Tesla (TSLA-US) released their Q2 earnings after the market close. Both are among the first of the 'Magnificent Seven' tech giants to report, and the market is watching closely to see whether their multi-billion-dollar AI investments are starting to yield returns. Alphabet traded volatile and closed lower, as investors closely monitored the impact of the company’s recent delay in launching a key AI strategic model. Texas Instruments (TXN-US), which also reported earnings after hours, saw its stock rise slightly.

This week’s密集 corporate earnings calendar is making markets more prone to volatility, while geopolitical tensions are further increasing investor caution.

International oil prices surged, closing at their highest level since June 11, with a daily gain of about 3%. This was triggered by threats from Yemen’s Iran-aligned Houthi rebels to attack shipping in the Red Sea. Both the Red Sea and the Strait of Hormuz are critical global energy transport chokepoints.

Former U.S. President Donald Trump said on Wednesday that if Iran fires on ships in the Strait of Hormuz even once, the U.S. would destroy an Iranian bridge or power plant.

Brent crude rose about 3.4%, closing at $94.07 per barrel—the highest in over a month—and briefly surpassed $95 during the session. West Texas Intermediate (WTI) crude rose about 3%, closing at $86.83 per barrel.

Traders continue to closely monitor oil prices, concerned that rising energy costs could push up consumer goods prices, potentially forcing the Federal Reserve (Fed) to raise interest rates.

According to a Reuters survey of economists, the Fed is expected to keep interest rates unchanged through the remainder of 2026. However, most respondents still believe the risk of rate hikes remains elevated.

According to the CME FedWatch tool, the market currently estimates a 66% probability that the Fed will hold rates steady at its upcoming meeting.

U.S. stock market performance on Wednesday (22nd):

Dow Jones Industrial Average: Down 6.06 points, or 0.012%, closing at 52,218.58. Nasdaq Composite Index: Down 146.30 points, or 0.57%, closing at 25,690.90. S&P 500 Index: Down 10.24 points, or 0.14%, closing at 7,498.96. Philadelphia Semiconductor Index: Up 54.50 points, or 0.44%, closing at 12,410.66. NYSE FANG+ Index: Down 181.92 points, or 1.04%, closing at 17,277.82.

Key Individual Stocks

All five 'FANG+' tech giants closed lower. Meta (META-US) fell 2.58%; Apple (AAPL-US) dropped 0.56%; Alphabet (GOOGL-US) declined 1.46%; Microsoft (MSFT-US) fell 1.86%; Amazon (AMZN-US) dropped 1.09%.

Most Philadelphia Semiconductor Index components gained. Nvidia (NVDA-US) rose 2.30%; Broadcom (AVGO-US) gained 2.67%; Micron (MU-US) fell 1.17%; Qualcomm (QCOM-US) rose 1.23%; Applied Materials (AMAT-US) dropped 1.88%; Texas Instruments (TXN-US) gained 0.99%; AMD (AMD-US) rose 1.45%.

ADR prices of Taiwan stocks were mixed. TSMC ADR (TSM-US) fell 0.76%; ASE ADR (ASX-US) rose 1.20%; UMC ADR (UMC-US) rose 0.61%; Chunghwa Telecom ADR (CHT-US) fell 0.46%.

Corporate News

Google parent Alphabet reported Q2 earnings that exceeded market expectations, driven by an 82% year-on-year increase in cloud revenue. The company also raised its 2026 capital expenditure forecast, now expecting full-year capex to reach up to $205 billion.

Tesla reported Q2 earnings. Despite revenue beating analyst estimates, profits fell short of market expectations, and the stock continued to decline in after-hours trading. The company said Q2 revenue grew 26% year-on-year from $22.5 billion to $28.35 billion. Net profit declined 5% from $1.17 billion to $1.11 billion.

Super Micro Computer (SMCI-US) surged over 19% after announcing it secured over $60 billion in new orders for Q4. This positive news boosted peer stocks Dell Technologies (DELL-US) and Hewlett Packard Enterprise (HPE-US), reinforcing market confidence in strong and sustained AI server demand.

Amazon announced layoffs in its general artificial intelligence (AGI) division, marking the latest targeted team adjustment following its large-scale January layoffs. A spokesperson said the company has long been developing large AI models and that related work remains one of its most important businesses. However, due to the rapid pace of change in the AI field, Amazon is further focusing on projects most critical to customers to accelerate key initiatives.

Wall Street Analysis

Kevin Gordon, Managing Director of Research and Strategy at Charles Schwab, said, 'Investors are now becoming more selective and discerning about AI-related investments.' He noted that software stocks declined during the day’s trading, while chip stocks rose.

He added, 'Beyond the big AI names, oil prices are now one of the key factors moving the market. High oil prices are exacerbating inflation concerns. As a result, investors are shifting toward defensive utility stocks, while gains in energy and materials sectors reflect market expectations of rising inflation.'

Senior Portfolio Manager Thomas Martin said, 'Inflation is indeed high, and I believe there’s not much the Fed can actually do. What the market truly fears is where interest rates will go next.'

All figures are updated as of press time and should be verified with actual market quotes.