US stocks fell on Thursday amid a deteriorating macroeconomic backdrop and fresh AI doubt on the latest earnings reports. The S&P 500 and the Dow lost around 0.8%, while the Nasdaq 100 lost nearly 2%. Alphabet dropped 6% after posting its Q2 results overnight. The Google parent raised its capital expenditure forecast to $205 billion this, double of last year, to reignite concerns of unsustainable spending in AI infrastructure. Meanwhile, Tesla slipped 10% after reporting lower profits despite a strong period for the overall electric vehicle sector. Meta and Amazon followed both companies by losing more than 3% each. Higher fuel prices lifted yields on greater escalation between Iran and the US, driving markets to position for a rate hike by this quarter. This was consolidated by initial jobless claims falling to six-decade lows. Financials remained under pressure with capital markets firms down. Among other earnings, Comcast and RTX were both higher topping their estimates.