US stock market today: Wall Street edges lower ahead of Alphabet earnings; Brent climbs above $95

US stock futures traded with modest losses on Wednesday, 22 July, as investors awaited Alphabet's quarterly earnings, which are expected to provide fresh clues on whether the technology industry's massive investments in artificial intelligence are beginning to generate meaningful returns.

Geopolitical tensions between the US and Iran also remained on investors' radar, keeping overall market sentiment fragile.

A two-day rebound in the Nasdaq 100 came to a halt, with Nasdaq-100 futures declining 0.6%. S&P 500 futures slipped 0.3%, while futures tied to the Dow Jones Industrial Average fell 31 points.

Hostilities in the Middle East entered their 11th consecutive day, with the US reportedly carrying out fresh strikes on Iran on Tuesday, while Iran launched missile and drone attacks targeting Bahrain, Jordan, and Kuwait.

President Donald Trump also dismissed the prospect of near-term negotiations with Iran and warned of broader military action, including possible strikes on the suspected nuclear facility at Pickaxe Mountain.

Iran's blockade of the Strait of Hormuz has prompted the US to intensify its military campaign in an effort to weaken Tehran's control over the strategic waterway. However, Iran has so far maintained its grip on the crucial shipping route, keeping global energy markets on edge.

The market's focus will soon shift to the start of the Big Tech earnings season, as AI hyperscalers update investors on their capital spending plans.

Alphabet is scheduled to report its June quarter results later on Wednesday, while Microsoft, Meta Platforms and Amazon will announce their earnings next week.

After Alphabet said last quarter that it plans to more than double its capital expenditure from 2025 to as much as $190 billion this year, investors will be looking for evidence that those investments are beginning to deliver returns. At the same time, companies building global AI infrastructure need capital spending to remain elevated to justify their premium valuations.

Commenting on the upcoming results, domestic brokerage Vested Finance said, "Alphabet's management commentary on AI investments, cloud growth, and capital expenditure could shape sentiment across the entire technology sector. The focus won't just be on Google's earnings—it will also influence expectations for upcoming results from Microsoft, Meta, Amazon, and Nvidia."

Meanwhile, Tesla is also scheduled to report its earnings after the market closes. Investors will be looking for updates on the company's AI ambitions after the stock struggled for most of this year.

Unlike many other technology companies, stronger capital expenditure and a higher outlook for AI investments could provide a boost to Tesla shares, which are down 16% so far this year. International Business Machines (IBM) and Texas Instruments are also slated to announce their quarterly results after the closing bell.

As tensions in the Middle East continued to escalate, crude oil prices remained elevated, with the international benchmark Brent crude futures rising 5% to a more-than one-month high of $95.47 per barrel. US WTI crude futures also gained 5% to $88.58 per barrel.

As both the US and Iran intensified their battle for control of the Strait of Hormuz, shipping traffic through the strategic waterway remained disrupted, raising concerns over global energy supplies.

While the US stepped up its military strikes on Iran, the Iran-backed Houthi rebels in Yemen reportedly warned of a blockade of Saudi Arabia's ports, a move that could further disrupt global energy markets.