The 10-year Treasury yield surged to its highest level in over a year, reflecting investor anxiety that the sudden climb in oil prices—up more than $25 since early July—will force a resurgence in global price pressures. This volatility is compounded by a darkening mood on Wall Street, where concerns over Big Tech’s massive AI investments are colliding with the new energy shock.

Market sentiment took a particularly hard hit from disappointing corporate updates. Alphabet shares dropped more than 5% following a sharp hike in its capital spending forecast to $205 billion, while Tesla shares slid nearly 10% after the company’s free cash flow slipped into negative territory during the second quarter. Investors are now bracing for further turbulence, awaiting Intel’s earnings report scheduled for after the closing bell.