Stock Market News, July 22, 2026: New Climb in Oil Prices Sends Bond Yields Near 2026 Highs

Brent crude, the international benchmark, is trading more than $20 above its early-July lows as tensions continue to escalate between the U.S. and Iran. Oil’s quick return to near-$100-a-barrel levels has already pushed average gas prices at the pump above $4 a gallon and is stoking inflation concerns.

The prospect that higher energy prices will lift inflation has 10-year Treasury yields approaching their 2026 peak, and traders now see the likelihood of the Fed raising interest rates next Wednesday at just under 25%, from about 16% at the start of this week.

Stock market moves were muted, with the Nasdaq composite slipping 0.6% after yesterday’s chip-stock rally. The S&P 500 declined 0.1%, while the Dow Jones Industrial Average slipped less than 0.1%.

After the bell, investors parsed earnings from Google parent Alphabet, auto maker Tesla and IBM, offering an early read on profits at Big Tech.

Alphabet posted 24% revenue growth in the second quarter, fueled by its booming cloud business, but the company’s free cash flow turned negative as it continues to spend heavily on data centers for AI computing. Shares were little changed after hours.

Tesla shares fell around 2% in off-hour trading after the company reported free cash flow fell for the first time in more than two years, thanks to $5.8 billion in capital expenditures to expand its footprint in artificial intelligence and robotics.