US stocks mixed at open as oil prices rise; Investors eye Alphabet, Tesla earnings

US stocks opened on a mixed note on Wednesday, July 22, as investors assessed rising oil prices, fresh tariff developments from the White House and geared up for earnings from Big Tech heavyweights Alphabet and Tesla after the closing bell.

At the opening bell, the Dow Jones Industrial Average traded higher around 0.1%, while the S&P 500 hovered around the flatline and the Nasdaq Composite slipped 0.4%, weighed down by weakness in technology stocks. The cautious start follows a strong session on Wall Street a day earlier.

Investor sentiment remained under pressure as oil prices climbed sharply amid geopolitical concerns. Brent crude rose about 2% to trade above $93 a barrel, touching its highest level in more than a month and briefly crossing $95, while West Texas Intermediate (WTI) crude gained around 2% to trade above $86 a barrel.

US futures fall ahead of Alphabet, Tesla earnings as oil spikes on Iran tensions

US stock futures traded lower on Wednesday, July 22, as rising oil prices, fresh tariff announcements and a busy earnings calendar weighed on investor sentiment ahead of the market open.

Futures tied to the Dow Jones Industrial Average slipped about 0.1%, while S&P 500 futures fell 0.3%. Nasdaq-100 futures led the declines, dropping around 0.7%, as investors awaited quarterly results from Alphabet and Tesla, due after the closing bell.

The cautious mood followed a positive session on Wall Street on Tuesday, with investors now turning their focus to Big Tech earnings, which are expected to offer fresh clues on the outlook for artificial intelligence spending and corporate profitability.

Oil prices jump amid US-Iran tensions

Investor sentiment was also pressured by a sharp rise in crude oil prices.

Brent crude futures climbed nearly 5% to around $94.93 a barrel, briefly crossing the $95 mark for the first time in over a month, while West Texas Intermediate (WTI) crude gained more than 4% to trade near $88.12 a barrel.

Oil prices extended gains after the United States carried out its 11th consecutive round of strikes against Iran.

US Secretary of State Marco Rubio said Iran was "not serious about talks."

"If they're serious, we're serious. If they're not, then we will do what is necessary to protect our interests and also the interests of our allies," Rubio said.

Trump announces fresh tariff measures

Markets also digested fresh trade developments after President Donald Trump signalled a shift from temporary tariffs to more permanent duties.

Trump announced plans to impose a 100% tariff on imported generic drugs, effective from August 2028, with the rate set to rise to 200% in August 2029.

In a post on Truth Social, Trump said the move was intended to bring generic pharmaceutical manufacturing back to the United States.

"This is done in order to RESHORE Generic Pharmaceutical Production into America, with a penalty to those Companies that decide not to build Plant and Equipment within the stated period of time given to them," he wrote.

Separately, a new 25% tariff on imports from Brazil came into effect on Wednesday.

The announcement had a limited impact on major US drugmakers, with shares of companies including Eli Lilly, Pfizer and Novo Nordisk little changed in pre-market trading. However, shares of several Indian generic drugmakers, including Aurobindo Pharma, Sun Pharmaceutical Industries and Cipla, came under pressure in overnight trade.