US equity markets retreated on Tuesday as investors adopted a cautious stance ahead of a critical week of earnings reports from major technology firms.
The sell-off was broad-based, reflecting heightened uncertainty surrounding the profitability of massive artificial intelligence investments.
Alphabet Inc. faces particular scrutiny as it prepares to report second-quarter results, with markets closely watching for signs that its AI spending is translating into sustainable revenue growth.
The pressure on tech shares coincided with a sharp rise in oil prices, adding to the macroeconomic headwinds facing equities.
Brent crude surged, driven by persistent supply-side risks and broader commodity strength.
This dual pressure—tech valuation concerns and rising energy costs—has forced traders to reassess risk exposure ahead of the earnings season.