Alphabet (Google) reported after the close that second-quarter capital expenditures totaled $45.1 billion, in line with its full-year $180 billion to $190 billion AI infrastructure guidance. WTI crude rose 2.8% to $86.66 a barrel after President Donald Trump threatened retaliation for attacks by Iran in the Strait of Hormuz. Technology shares broadly weakened, leaving the Nasdaq down 0.6%, the S&P 500 off 0.1% and the Dow slightly lower. Constellation Energy is scheduled to report second-quarter earnings on Thursday, August 6.

The Federal Reserve’s first FOMC statement under new Chair Kevin Warsh kept the federal funds target range unchanged at 3.50% to 3.75% but struck a more hawkish tone by emphasizing “delivering price stability.” CME FedWatch showed rising odds of an October rate hike, while the 2-year Treasury yield jumped 16.9 basis points to 4.216%. U.S. stocks fell across the board, with the Dow down 1% to 51,493, the S&P 500 off 1.2%, and the Nasdaq down 1.3%.