Brent crude oil prices climbed past $100 per barrel amid Middle East volatility. Meanwhile, declining share prices for Tesla and Alphabet weighed on the S&P 500.

Heavy investment in emerging technologies by Tesla and Alphabet has triggered a broad tech sell-off and prompted concerns over profitability.

Tesla achieved record deliveries of 480,126 vehicles in the second quarter, though analysts anticipate a $3.3 billion negative free cash flow. This shift comes as the company increases its 2026 capital budget to over $25 billion, primarily targeting AI, robotics, and the Cybercab.

Elon Musk's net worth has fallen below $1 trillion following a sharp decline in SpaceX share prices. A single-day drop of 16.43% for SpaceX shares erased $240 billion from his personal valuation.

Tesla shares fell sharply despite exceeding quarterly delivery targets as investors reevaluate the company's valuation tied to AI and autonomous technology.