Fear Has A Currency

The U.S. dollar strengthens as the Iran conflict fuels expectations of higher interest rates.

Author

Ankit Sinha
July 24, 2026

Market Snapshot

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Market News

The Market Gets Two Headaches

Wall Street tumbled as Brent crude surged above $100 a barrel on escalating U.S.-Iran tensions, reigniting inflation fears and pushing Treasury yields to fresh yearly highs. 

The S&P 500 fell 1.2%, while megacap tech stocks suffered their worst session since April's tariff selloff.

Investors also questioned whether massive AI spending is translating into profits, sending Alphabet down 6.9% after it raised capital expenditure guidance despite solid earnings. Tesla plunged 14.5% as weaker profits overshadowed strong EV deliveries.

The geopolitical backdrop worsened after President Trump threatened further military action against Iran, fueling concerns that higher energy prices could keep inflation elevated and delay Fed rate cuts, or even force another hike.

Meanwhile, chipmakers including Intel and AMD posted upbeat AI-related updates, but broader concerns over AI returns overshadowed enthusiasm. Defense stocks Lockheed Martin and RTX gained after lifting sales forecasts, while American Airlines cut earnings guidance due to rising fuel costs.

Peel Take: Markets got hit by a double whammy: higher oil prices and growing skepticism over AI spending. With Brent back above $100, investors are worried inflation could stay sticky just as Big Tech pours hundreds of billions into AI. The next round of earnings from hyperscalers will be crucial in proving whether AI is delivering returns, or simply becoming a very expensive bet.

What's Ripe

Lockheed Martin Corp. (LMT) 10.5%

  • LMT jumped 10.5% after the defense contractor reported a beat-and-raise quarter, lifting its full-year outlook.

  • The company now expects earnings per share of $30.30 on $80.8 billion in sales, up from its previous guidance of $29.80 and $78.8 billion, reflecting strong demand for defense programs.

  • Peel Take: With geopolitical tensions driving higher defense spending, contractors with strong order books are gaining momentum. Raising guidance in this environment signals confidence that demand will remain robust well beyond this year.

Allegion PLC (ALLE) 10.5%

  • ALLE surged 10%, making it the best-performing stock in the S&P 500, after the lock manufacturer and physical security company posted better-than-expected second-quarter earnings and raised its full-year profit outlook.

  • The results highlighted resilient demand for security products despite a challenging economic backdrop.

  • Peel Take: Companies that can beat expectations and raise guidance tend to stand out during earnings season. The strong outlook suggests demand for physical security remains steady, giving investors more confidence in the company's growth trajectory.

What's Rotten

Tesla Inc. (TSLA) 14.5%

  • Tesla tumbled 14.5%, making it the worst-performing stock in the S&P 500, after second-quarter earnings missed Wall Street expectations.

  • The weak profit overshadowed a 25% year-over-year jump in vehicle deliveries, as investors focused on margin pressure and profitability.

  • Peel Take: Delivering more cars is no longer enough. Investors want to see EV makers convert sales growth into stronger earnings, and Tesla's latest results suggest profitability remains the bigger challenge.

Alphabet Inc. (GOOGL) 7.1%

  • Alphabet fell 7.1% after beating Wall Street's second-quarter earnings expectations but once again raised its capital spending forecast to support its expanding AI infrastructure.

  • Investors welcomed the strong results but worried about the growing cost of the AI race.

  • Peel Take: Beating earnings isn't enough anymore. Investors increasingly want proof that massive AI investments will generate meaningful returns, not just higher spending.

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Banana Brain Teaser

Previous

Jackie has two solutions that are 2 percent sulfuric acid and 12 percent sulfuric acid by volume, respectively. If these solutions are mixed in appropriate quantities to produce 60 liters of a solution that is 5 percent sulfuric acid, approximately how many liters of the 2 percent solution will be required?

Answer: 42

Today

A three-digit code for certain locks uses the digits 0, 1, 2, 3, 4, 5, 6, 7, 8, 9 according to the following constraints. The first digit cannot be 0 or 1, the second digit must be 0 or 1, and the second and third digits cannot both be 0 in the same code. How many different codes are possible?

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