ASX set to rise, Wall Street mixed; Oil continues to climb

The US stock market showed mixed performance on July 23, 2026, as investors grappled with ongoing tensions in the war with Iran, while oil prices surged another 3 per cent. The S&P 500 closed slightly lower, slipping less than 0.1 per cent, after fluctuating between small gains and losses throughout the day. The Dow Jones gained 61 points, or 0.1 per cent, in mid-afternoon trade, while the Nasdaq composite fell 0.3 per cent. Meanwhile, the Australian sharemarket was poised for a rise, with futures indicating a potential gain of 75 points, or 0.9 per cent, at the opening. The ASX had already advanced 0.3 per cent on Wednesday, and the Australian dollar traded at 69.99 US cents. The majority of stocks in the S&P 500 saw gains, driven by positive earnings reports from several major corporations. Companies such as Philip Morris International, AT&T, and Super Micro Computer reported results that exceeded expectations, contributing to a volatile yet generally upward trend in the market. Philip Morris International's shares rose 2.4 per cent after the company announced stronger-than-expected profits and revenue, along with a notable increase in shipments of smoke-free products. AT&T climbed 2.7 per cent following a better-than-anticipated profit report, with CEO John Stankey announcing accelerated plans to return approximately $10 billion to shareholders through stock buybacks. Super Micro Computer's shares surged 21.1 per cent, as the firm signaled improved profit margins for the current quarter, although revenue was expected to fall near the lower end of its projected range. Conversely, some stocks faced declines, including GE Vernova, which dropped 7.9 per cent after underperforming against analyst expectations. Alphabet saw a slight increase of 0.1 per cent ahead of its upcoming earnings report, which is anticipated to provide further insight into the company’s progress in artificial intelligence research and development. Investors remain cautious, as concerns persist over whether substantial investments in AI infrastructure are translating into meaningful productivity and profitability. This uncertainty has kept AI-related stocks at the forefront of Wall Street volatility. Micron Technology experienced a volatile day, with its shares fluctuating between a loss of 3.6 per cent and a gain of 0.8 per cent. The company had rebounded significantly, rising 14.4 per cent in the previous two trading sessions to recover most of its earlier decline. Despite these movements, Micron remains up around 241 per cent for the year to date. Broader market sentiment was influenced by continued increases in oil prices, which pose challenges for corporate profitability due to rising operational costs. Crude oil prices reached new heights, with the price of a barrel of Brent crude climbing 3.3 per cent to $94. The price briefly surpassed $95 during the morning session, marking its highest level in nearly six weeks. This follows a sharp rise from below $72 early in the month, reflecting the impact of ongoing hostilities in the Middle East. The conflict has disrupted oil exports via the Strait of Hormuz, a critical route for global energy supplies. Rising oil prices are raising concerns about inflationary pressures, potentially prompting the Federal Reserve and other central banks to consider rate hikes. Such measures could slow economic growth and negatively affect financial markets. The yield on the 10-year US Treasury bond increased to 4.66 per cent, up from 4.63 per cent late Tuesday and from 3.97 per cent before the war with Iran began. This rise has contributed to historically elevated mortgage rates, adding to the financial strain on households and businesses. With oil prices continuing to climb and geopolitical tensions unresolved, investors face a complex landscape marked by both opportunities and risks. The outlook for the coming days will depend heavily on developments in the Middle East, corporate earnings reports, and monetary policy decisions by central banks.