US equities sold off as mega-cap technology led declines after Tesla and Google reported negative free cash flow tied to heavy AI-related capital outlays. The Dow Jones Industrial Average fell 503 points, or 1%, while the S&P 500 dropped 90 points, or 1.2%, and the Nasdaq slid 553 points, or 2.1%. The Russell 2000 lost 20 points, or 0.7%, the Dow Transports shed 20 points, or 0.1%, the equal-weight S&P 500 fell 31 points, or 0.4%, and the \u201cMag\u201d index tumbled 1,642 points, or 4.8%. Oil strengthened, with Brent back above $100 and WTI at $92, as US 10-year Treasuries pushed through 4.6% before peaking near 4.7%; the implied probability of a September rate hike rose to 70% from 51% on Wednesday and 40% a week ago.<\/p>\n
Tesla\u2019s shares fell 14.5%, or $55, after the company flagged capex above $25bn this year and disclosed a 67% drop in regulatory credit sales, while Google shares declined 7%, or $23, after it lifted its 2026 capex outlook to as much as $205bn from $190bn. The S&P 500 closed at 7,408, down 90 points, after touching 7,376; technical levels cited were resistance at 7,474, near-term support at 7,300\u20137,350, and trendline support at 7,172.<\/p>\n
European equities were higher, with Spain up 1%, Italy, the Eurostoxx and Germany up 0.85%, and France and the UK up 0.4%, while US futures pointed higher: Dow +270, S&P +15, Nasdaq +30 and Russell +11. US data expectations included S&P Manufacturing PMI at 54.4, Services PMI at 51.5, new home sales up 4.8% versus -7.3% previously, and building permits after a prior -3% reading; year-to-date sector moves were led by Energy +32% and lagged by Consumer Discretionary -8.1% and Communications -4.6%.<\/p>\n\n\n\n